印度尼西亚领先的低碳钢铁制造商 PT Gunung Raja Paksi Tbk (GRP) 获得国际金融公司十多年来对亚洲钢铁的首笔投资
Jakarta, Indonesia, September 5th, 2024 – PT Gunung Raja Paksi Tbk (GRP), Indonesia’s largest private, domestically owned steel manufacturer and an industry leader in the production of low-carbon steel in Asia, today signs a landmark financing agreement worth up to US $60 million equivalent with the International Finance Corporation (IFC), marking IFC’s first investment in Asian steel in over a decade.
The partnership between GRP and IFC, the largest global development institution focused on the private sector in emerging markets, will scale the steel manufacturer’s ability to produce high-quality, low-carbon steel at its 200-hectare plant in West Java Province, using less than half the rate of carbon emissions compared with the global averages for steel production.
IFC has also signed an Advisory Engagement Letter with GRP to develop and implement its decarbonization strategy, including exploring different financing options to support GRP’s decision to entirely decommission the company’s newly built traditional blast furnace, as well as improving energy efficiency of the company’s Electric Arc Furnace(EAF) and assessing new downstream process options and technologies.
Global demand for steel is set to rise 30% by 2050, which experts predict will be mostly met by rising supply from Asia. Already, Indonesian steel production has risen by over 90% since 2019 and is forecast to rise again this year. IFC’s investment in GRP therefore comes at a pivotal time in Indonesia’s journey to becoming a steelmaker to the world and the country’s goal of reaching net zero by 2060. The investment will also help GRP meet its ambitious goal of achieving net-zero emissions by 2050.
Steel is one of the biggest sectors contributing to the global climate emergency, accounting for 8% of global greenhouse gas emissions, and if left unchecked, will consume a quarter (25%) of the world’s total remaining carbon budget for limiting global warming to 1.5 degrees C by 2050.
GRP has been operating its low-carbon steel manufacturing technology (EAF) since 2016, making it one of the longest-standing and technologically advanced, low-carbon steel producers in Asia. And while other manufacturers now use EAF, GRP is the only integrated mill – from upstream to downstream of flat products – using low-carbon steel in Asia.
"Through this partnership with IFC, GRP will continue to set new bars for decarbonizing steel production in Asia. This first in a generation investment recognizes GRP’s early leadership as one of the very first, and still very few, operators of low-carbon steel mills in Asia. The steel industry is critical to the prosperity of Asia and the wider world, but the science is clear, we must rapidly decarbonize as a sector to withhold and grow this prosperity for future generations. If steel companies are not willing to embrace the green transition, their assets risk becoming stranded. Sustainability has and always will be GRP’s guide forward,” said Kimin Tanoto, GRP’s Chairman of Executive Committee.
IFC’s US $60 million-equivalent investment will also be used to strengthen the global business case for low-carbon steel, including exploring new high-value steel products that can become compatible with EAF production at GRP’s site, which could be rolled out across the global industry.
“Our partnership with GRP is a significant step in our commitment to supporting industrial decarbonization in Indonesia, and marks IFC’s first steel investment in Asia in over a decade”, said Euan Marshall, IFC’s Country Manager for Indonesia and Timor-Leste. “We are delighted to provide both investment and advisory assistance to support GRP in its journey to develop a commercially and environmentally sustainable business.”
GRP aims to leverage its partnership with IFC to enhance its competitive edge in exporting low-carbon steel to the European Union, compared to traditional BF steel manufacturers. Additionally, GRP seeks to explore new opportunities to displace Indonesia’s imported steel products from countries that emit more CO2 per ton of steel produced than GRP’s low-carbon steel production.
Kelvin Fu, GRP’s Chief Transformation Officer, added, “Today’s announcement with IFC is a powerful endorsement of GRP’s vision to revolutionize the steel industry not just in Asia, but globally. Together, we’re setting a precedent for what is possible. I’m proud that this partnership strengthens our ability to produce low-carbon steel, explore new market opportunities, especially in Europe, and that it secures GRP’s position as a key player in Indonesia’s economic and environmental future. By leveraging cutting-edge technology and strategic alliances, we are not only aligning with global environmental standards but pushing beyond them.”
