One of Chinese major companies, Shandong Nanshan, will expand its aluminium plant in Indonesia to become a US$ 6 billion smelting complex in 2028. The company will also be constructing an aluminum smelting unit with an annual capacity of 250,000 tons later this year.

Shandong Nanshan is a private Chinese company that has grown through multi-billion dollar investments in Southeast Asia in the metal processing and oil refining sectors. The company also processes bauxite into alumina, which is then sold to the market.

Nanshan invites Chinese companies to Indonesia

According to the Nanshan Group, they are planning to bring more Chinese companies to this location. The company also explained that the plan to build a smelting unit by the end of 2023 is part of a plan to build an aluminium factory with a capacity of 1 million tons in 2028 that will produce high-end aluminium ingots for the aircraft and electric vehicle industries.

In Indonesia, Nanshan has a number of alumina manufacturing facilities with a production capacity of 2 million tons per year in the Galang Batang Special Economic Zone (SEZ) on Bintan Island. The company also has a bauxite processing factory in Kalimantan.

Products of the bauxite processing factory are used to make alumina which will be exported to Malaysia and international traders.

Nanshan plans to build a renewable power plant

Currently, the Nanshan aluminium factory facility in Indonesia is powered by a coal-based power plant with a capacity of 160 megawatts (MW) within the SEZ.

Hao Weisong, General Manager of Shandong Nanshan said that the company plans to build a 100 MW solar power facility and purchase renewable energy from the State Electricity Company (PLN) as an alternative to the coal-based power plant.