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Local steel firm Tata Metal breaks ground on Rp 1.5t expansion

The new unit will produce 250,000 tonnes of coated steel per year, adding to the company’s existing output of 500,000 tonnes.

Maudey Khalisha (The Jakarta Post)
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Tue, January 27, 2026 Published on Jan. 27, 2026 Published on 2026-01-27T11:28:40+07:00

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People on stage make a thumbs-up gesture on Jan. 26, 2026 at the groundbreaking of the PT Tata Metal Lestari’s Continuous Galvanizing Line (CGL) 2 facility in Purwakarta, West Java.
People on stage make a thumbs-up gesture on Jan. 26, 2026 at the groundbreaking of the PT Tata Metal Lestari’s Continuous Galvanizing Line (CGL) 2 facility in Purwakarta, West Java. (Ministry of Industry /- )

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ocal steel company PT Tata Metal Lestari has begun construction on its second Continuous Galvanizing Line (CGL 2) facility in Purwakarta, West Java, as part of an expansion of its domestic coated steel production capacity.

Stephanus Koeswandi, the firm’s vice president of operations, said the new CGL will produce 250,000 tonnes of coated steel per year, adding to the company’s existing output of 500,000 tonnes from its CGL 1 facility in Cikarang, also in West Java.

“The intermediate industry has a crucial role as a connector between upstream and downstream industries. Without a strong sector, the supply chain will be fragile and dependence on imports will remain high,” he said in a statement on Monday.

Stephanus added that the company currently supplies the domestic market and exports coated steel products to 25 countries, including the United States and Europe.

“The development of CGL 2 is part of our roadmap to gradually achieve an installed capacity of up to 2.5 million tonnes of coated steel over the next 10 years, while also […] delivering Made in Indonesia products with global standards,” he said.

The project is expected to have a positive impact on the region, particularly through the creation of new jobs and the stimulation of the local economy in Purwakarta regency and the wider West Java area.

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“This is part of a continued investment commitment totaling Rp 1.5 trillion (US$89 million), which will add around 350 workers. This project is the first line in Southeast Asia to use zinc magnesium and zinc aluminum magnesium coating technology, enabling it to increase the lifespan of steel usage by up to four times,” he added.

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