TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
GRP links up with Primetals Technologies, becomes leading zero carbon HRC steel supplier
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
GRP chief transformation officer Kelvin Fu (fifth left), GRP executive committee chairman Kimin Tanoto (seventh left)
P
T Gunung Raja Paksi Tbk (GRP), Indonesia’s largest privately owned steel manufacturer, signed a landmark deal with Primetals Technologies Ltd, to become Asia's first steel mill outside of China able to meet Europe’s growing demand for zero carbon hot rolled coil (HRC) steel. This development confirms GRP as the leading low carbon steel manufacturer in Southeast Asia.
GRP will integrate Primetals Technologies' Arvedi ESP concept, a technology which directly links casting and rolling processes operating in endless mode. This technology also allows the production of thin and ultrathin gauges well below 1 millimeter in thickness. It is the first of its kind to eliminate the use of fossil fuels in steel production, reducing direct greenhouse gas emissions to zero.
Under this deal, Primetals Technologies will supply the complete technological equipment package, including a high-speed caster and a three-plus-five stands rolling mill, as well as a full suite of electric and automation solutions to complete the ESP integration.
Production will begin by 2027, aligning with the launch of the European Union’s Carbon Border Adjustment Mechanism (CBAM) and advancing GRP's plans to double its current production to 2.5 million tonnes of low-carbon steel. Additionally, over 50 percent of the steel produced will be traded into the European Union
This deal forms GRP’s latest milestone in its industry-leading Project Green Dragon initiative.
“Through GRP’s partnership with Primetals Technologies, we are investing in the global competitiveness of the Indonesian steel industry to help safeguard its future, while building on the Indonesian Government’s efforts to sustainably scale this critical industry and reach net zero by 2060,” said GRP executive chairman Kimin Tanoto.
Moreover, the operational efficiencies achieved through Arvedi ESP’s use of advanced digital solutions, such as AI learning tools, at plants like GRP’s demonstrates how the “internet of things” (IoT) is revolutionizing the steel production industry and bringing new levels of innovation to the Asia region.
“The Arvedi ESP line at GRP will be the 13th Primetals Technologies plant in the world, applying our reliable and revolutionary concept of endless casting and rolling. We also recognize GRP for being the first producer in Asia, outside of China, to embrace it”, said Andreas Viehboeck, Primetal Technologies executive vice president and head of Global Business Unit Upstream.
The technology’s environmental benefits, which include zero direct carbon dioxide (CO2) emissions, reduced energy consumption and the elimination of cold rolling and annealing downstream processes, are driving real-world emissions reductions in the global steel industry.
“This strategic investment will not only boost production capacity to meet surging global demand, but also introduce cutting-edge technologies that minimize environmental impact,” said GRP chief transformation officer Kelvin Fu.
