By Alexander Ginting
Chinese Integrated coke, coking chemicals and refined chemicals producer China Risun Group Limited announced on Friday the establishment of a joint venture to invest in and construct a coking project with an annual volume of 4.7 million tonnes in Central Sulawesi.
The Group is expanding its business overseas for the first time.
The company’s wholly-owned subsidiary Risun Investments, entered into the Joint Venture agreement with Tianjin Xintiangang and Stephanie Development to jointly establish De Tian Coking, which will invest in the construction of a coking project in Indonesia Morowali Industrial Park (IMIP)
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The project will have a total investment of approximately US$830 million. Risun Investments will subscribe for $59.52 million, representing 24% of the registered capital of the Joint Venture. In addition, Risun Investments may also provide shareholder loans in an amount up to $285 million to De Tian Coking if it is not able to obtain external financing for the project.
According to the company, dozens of large-scale metal smelting enterprises have or will have business establishments in the park and it is expected that the demand for coke will be enormous in the future.
China Risun Group Limited is the world's largest independent producer and supplier of coke by volume in 2020, according to Frost & Sullivan.(alexander ginting)
Editing by Reiner Simanjuntak
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