Gunung Raja Paksi (GRP), the largest private steel manufacturer in Indonesia, has reached an agreement with Primetals Technologies to become the first Asian steel plant outside China to produce zero-carbon hot coil (HRC) steel.
This move will meet the growing demand for HRC steel in Europe and position GRP as the leading low-carbon steel manufacturer in Southeast Asia.
GRP will integrate Primetals Technologies’ Arvedi Endless Bletting Production (ESP) technology, which combines casting and rolling processes to produce thin and ultra-thin measurement tables.
Arvedi ESP technology eliminates the use of fossil fuels, reducing greenhouse gas emissions to zero.
The technology will largely replace Indonesia’s cold-coiled coil steel, and GRP also uses steel from electric arc furnaces (EAFs) as part of its “ambitious” transition plan.
GRP plans to start production in 2027, aiming to increase its production from 1.3 million tons (MT) to 2.5mt of mild steel, more than half of that of the EU market.
“Through GRP’s partnership with Primetals Technologies, we are investing in the global competitiveness of Indonesia’s steel industry to help maintain its future by 2060,” said Kimin Tanoto, Executive Chairman of GRP.
Primetals Technologies will provide complete technical equipment, including high-speed casters and rolling plants, as well as complete electric and automated solutions for ESP plants.
The deal provides GRP with a competitive advantage to export to the EU under the Carbon Border Adjustment Mechanism (CBAM) regime and marks a milestone for the company’s Project Green Dragon Initiative, announced in November 2024.
“Our adoption of Primetals Technologies’ Arvedi ESP technology was literally overnight, with GRP jumping from its position as a well-known original commodity manufacturer to a high-end steel product manufacturer – no other steel manufacturing Merchant – Other Steel Manufacturers – No other steel manufacturer The world has successfully performed the category shift. “
Andreas Viehboeck, Executive Vice President and upstream of the global business unit at Primetals Technologies, said: “Arvedi ESP technology ensures higher energy savings, higher material yields and product quality compared to other available technologies, while ensuring no fossil fuel use.
“This will enable GRP to stand out and stand out in Indonesia and international markets, allowing them to enter high-value-added, premium product wall ni, including automotive applications.”
