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Indonesia's First Anti-Corrosion Stainless Steel Plant Commences Operations; Southeast Asia's Largest Seamless Pipe Factory Simultaneously Launched!

Comprehensive Indonesian Media Report, June 20, 2025, in a significant breakthrough for its stainless steel industry, aimed at reducing import dependence and leveraging its abundant nickel resources, Indonesia has officially launched its first specialized factory producing corrosion-resistant stainless steel. This project is a crucial step in strengthening the domestic production of high-end stainless steel for the Oil & Gas (O&G) sector. Key highlights:

 

Indonesia's First Anti-Corrosion Stainless Steel Plant Operational:

PT CT Advance Technology, in collaboration with Spain's Tubacex Group, has invested IDR 100 billion (approx. RMB 450 million / USD 62 million) to build Indonesia's first corrosion-resistant stainless steel factory.

The plant specializes in producing offshore-grade stainless steel, with an expected annual capacity of 10,000 tons.

 

Southeast Asia's Largest Seamless Pipe Factory Simultaneously Launched:

PT Artas Energi Petrogas, partnering with Inerco Global International, has commenced operations at its seamless pipe factory, representing an investment of IDR 2.5 trillion (approx. RMB 11.25 billion / USD 1.55 billion).

As the largest facility of its kind in Southeast Asia, it boasts an annual capacity of 250,000 tons, capable of meeting half of Indonesia's domestic demand.

This is projected to save annual import costs by approximately RMB 6.75 billion (USD 930 million).

 

Government Policy Driving Development:

Indonesia's nickel downstreaming policy and steel import control measures have provided strong support for these high-end domestic manufacturing projects. The overarching goal is achieving self-sufficiency in materials for oil and gas equipment.

 

Indonesia's "Nickel-as-Spearhead" Strategy Accelerates!

The launch of the first corrosion-resistant stainless steel plant marks a critical leap in Indonesia's transformation from a raw material exporter to a high-end manufacturing nation.

Leveraging its advantage of holding 18% of global nickel reserves, Indonesia has forced industrial upgrading through policies like the 2020 nickel ore export ban. It has now breached a breakthrough in the specialized materials market for oil and gas equipment.

If domestic production capacity continues to expand, it will not only reshape the stainless steel supply chain landscape in Southeast Asia but also potentially challenge the dominance of Chinese, Japanese, and South Korean companies in the high-end corrosion-resistant steel market.

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