GRP Steel Company in Indonesia launches zero carbon hot-rolled coil project

On February 26th, Indonesian A302 Grade D steel manufacturer PT Gunung Raja Paksi Tbk (GRP) announced a major industrial upgrading plan, aiming to build the largest zero carbon hot-rolled coil production base in Southeast Asia through technological innovation and capacity expansion. The company's strategic plan shows that its low-carbon hot-rolled coil annual production capacity will increase by 92.3% from the current 1.3 million tons to 2.5 million tons by 2027, with over half of it directly supplied to the EU market to cope with the upcoming implementation of the Carbon Border Adjustment Mechanism (CBAM).

As the first low-carbon steel manufacturer in Southeast Asia A302 Grade D steel to obtain international authoritative certification, GRP reached a strategic cooperation agreement with Primetals Technologies, a leading metallurgical technology company, on February 25th. This move marks that the company will become the first Asian steel enterprise outside of China to have a stable supply of zero carbon hot rolled coils (HRC) to the European market, further consolidating its leading position in regional green steel manufacturing.

To achieve the zero carbon goal, GRP will adopt a series of plans, including optimizing the existing electric arc furnace process to achieve a 10% -20% reduction in energy consumption; Build an AI intelligent grading system, establish long-term cooperation with high-quality scrap steel suppliers, and ensure scrap steel quality and supply stability through strategic investment in scrap steel sites.

It is understood that GRP also has a production capacity of 1.2 million tons of slab, and after capacity expansion, it will achieve a comprehensive production capacity of 3.7 million tons per year.

Against the backdrop of Meranti Green Steel in Singapore announcing the launch of a 2.5 million ton low-carbon hot-rolled coil project in Thailand (expected to start production in mid-2028), GRP's capacity expansion plan will be completed three years ahead of schedule.

With the continuous growth of market demand for green steel products, GRP's A302 Grade D steel capacity doubling plan will give it an advantage, and the global steel trade pattern may usher in a new round of green reshuffle.