Indonesia-based private steelmaker Gunung Raja Paksi Tbk (GRP) has entered into a multi-million-dollar deal with UK-based plantmaker Primetals Technologies to become the first steelmaker in Asia, outside of China, to start exporting zero-carbon hot rolled coil to Europe. Primetals will provide equipment including a high-speed caster and an eight-strand rolling mill within the scope of the deal. Production is expected to start in 2027.
GRP will integrate Primetal's Arvedi ESP technology that directly links casting and rolling processes operating in endless mode and allowing the production of hot rolled coil in thin and ultra-thin gauges well below 1 millimeter in thickness. As part of its ambitious green steel transition program, GRP will also implement electric arc furnace (EAF)-based steelmaking.
The Arvedi ESP technology eliminates the use of fossil fuels, reducing direct greenhouse gas emissions to zero. It will also advance GRP's plans to double its current production from 1.3 million mt to 2.5 million mt of low-carbon steel, over 50 percent of which will be traded into the European Union (EU).
The deal is expected to give GRP a competitive advantage for exporting into the EU's carbon border adjustment mechanism (CBAM) regime.
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