Steel maker BlueScope Steel Ltd
(ASX:BSL) is to boost the capacity of its plant in Indonesia after announcing it will complete construction of its second metallurgical coating line, with in-line painting capability.
The company’s Chief Executive of Asia, Sanjay Dayal says that domestic market conditions, in particular residential steel demand, have improved.
He says the company believes that now is the right time to complete the project and boost BlueScope’s capacity in this key market.
BlueScope says the new line will produce thin gauge coil for residential construction applications, taking the total combined capacity up to 265,000 tonnes per annum of metallic coated and 160,000 tonnes per annum of painted steel.
The company says the estimated cost to complete the project is a further US$40 million with around US$10 million in fiscal 2010 and US$30 million in fiscal 2011.
BlueScope Steel posted a $66.4 million loss for 2009.
