International Finance Corporation (IFC), a part of the World Bank Group, has announced that it has signed an agreement with Indonesian steelmaker PT Gunung Raja Paksi Tbk to support the latter’s transition to low-carbon steel production. Accordingly, IFC will provide financing of up to $60 million to be used in the company’s plans to modernize its electric arc furnace.
The financing is expected to boost PT Gunung Raja Paksi Tbk’s capacity to recycle a variety of scrap metals and produce high-quality steel with significantly lower emissions. The project will also help Indonesia meet growing steel demand and reduce its reliance on high-carbon steel imports.
PT Gunung Raja Paksi Tbk currently has an annual production capacity of 1.3 million mt of high-quality low-carbon steel.