Expansion Management

JFE Steel to Build Plant in Indonesia to Meet Demand

June 18, 2013

The company will produce 400,000 tons per year of galvanized steel sheet, and is expected to begin operations in March 2016.

Adrienne Selko

As local demand for high-end automotive steel sheet is expected to grow as automakers further expand capacity, JFE Steel, a Japanese steel producer, announced yesterday that it will that it will construct Indonesia’s first continuous galvanizing line (CGL) for automobiles

The plant will be built at MM2100 Industrial Town, an industrial estate in the city of Bekasi just outside of Jakarta. According The Jakarta Globe,the company will invest$300 million.

The company said in a statement that its new CGL will be able to produce 400,000 tons per year of galvanized steel sheet, and is expected to begin operations in March 2016.

The new continuous galvanizing line will be JFE Steel’s third CGL for automobiles in Asia, following China and Thailand, where the company already operates CGLs. JFE Steel also provides manufacturing technology for a CGL and related facilities operated by its partner JSW Steel in India.

Indonesia, Southeast Asia’s second largest automobile producer, is a production and export base for many global automakers.

According to the The Jakarta Globe, local demand for high-end automotive steel sheet is expected to grow as automakers expand capacity in line with the expected car sales of more than 1.1 million this year, almost unchanged from 2012.

About the Author

Adrienne Selko | Senior Editor

Focus: Workforce, Talent

Follow Me on Twitter: @ASelkoIW

Bio: Adrienne Selko has written about many topics over the 17 years she has been with the publication and currently focuses on workforce development strategies. Previously Adrienne was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck? which made the Cleveland Plain Dealer's best sellers list. She is also a senior editor at Material Handling & Logistics and EHS Today.

Editorial mission statement: Manufacturing is the enviable position of creating products, processes and policies that solve the world’s problems. When the industry stepped up to manufacture what was necessary to combat the pandemic, it revealed its true nature. My goal is to showcase the sector’s ability to address a broad range of workforce issues including technology, training, diversity & inclusion, with a goal of enticing future generations to join this amazing sector.

Why I find manufacturing interesting: On my first day working for a company that made medical equipment such as MRIs, I toured the plant floor. On every wall was a photo of a person, mostly children. I asked my supervisor why this was the case and he said that the work we do at this company has saved these people’s lives. “We never forget how important our work is and everyone’s contribution to that.” From that moment on I was hooked on manufacturing.

I have talked with many people in this field who have transformed their own career development to assist others. For example, companies are hiring those with disabilities, those previously incarcerated and other talent pools that have been underutilized. I have talked with leaders who have brought out the best in their workforce, as well as employees doing their best work while doing good for the world.