GGRP Sets Ambitious Goal for Zero-Emission Hot Rolled Steel in Europe

JAKARTA, investortrust.id – PT Gunung Raja Paksi Tbk, an Indonesian steel manufacturer forges a pioneering partnership with a global technology firm to produce zero-emission hot rolled steel. This milestone initiative addresses Europe’s growing demand for greener metal products and sets the stage for enhanced industrial competitiveness in a region with stringent environmental regulations, promising a transformative impact on the international steel industry.

Gunung Raja Paksi (GGRP) signed a landmark agreement with Primetals Technologies Ltd on Tuesday, Feb 25, 2025. Through this collaboration, GGRP became the first steelmaker in Asia, outside China, to supply carbon-free hot rolled coils HRC to the European market. This effort aimed at doubling the company’s production capacity to 2.5 million metric tons of low-carbon steel by 2027, with more than half destined for export to the European Union.

Under the terms of the deal, GGRP planned to incorporate Arvedi ESP, a revolutionary system by Primetals Technologies that directly connects casting and rolling in a continuous process. This breakthrough technology, designed to eliminate the use of fossil fuels, enabled GGRP to produce steel in ultra-thin formats under 1 millimeter. Such a capability allowed the potential replacement of cold-rolled steel in Indonesia and reduced direct greenhouse gas emissions to zero.

Executive Chairman GGRP, Kimin Tanoto, said this cooperation boosted GGRP’s position as a pioneer in low-carbon steel across Southeast Asia. He underscored the competitive advantage this brought, especially in anticipation of Europe’s Carbon Border Adjustment Mechanism CBAM. According to him, the agreement reflected GGRP’s most recent accomplishment under its industry-focused Project Green Dragon initiative.

“By partnering with Primetals Technologies, we invest in the global competitiveness of Indonesia’s steel industry for the long term while supporting the Indonesian government’s pursuit of sustainable steel development and its target of net zero emissions by 2060,” explained Kimin.

In line with this ambitious transition, GGRP prepared to implement electric arc furnace EAF-based steel production. Arvedi Endless Casting and Rolling ESP, credited as the world’s first process for producing coil without fossil fuels, substantially cut direct emissions and effectively signaled a leap forward in sustainable steelmaking.

This project also represented GGRP’s commitment to capturing the rising ‘green premium’ in global markets, reflecting a worldwide shift toward eco-friendly manufacturing processes. Kimin remarked that GGRP’s Arvedi ESP mill could produce ultra-thin HRC with more uniform quality than competing systems. Moreover, eliminating cold rolling and annealing steps contributed to meaningful reductions in overall energy consumption.

Executive Vice President and Head of Global Business Unit Upstream at Primetals Technologies, Andreas Viehboeck, expressed enthusiasm over collaborating with GGRP on what he called the most advanced low-carbon steel project in Asia. “The Arvedi ESP line at GGRP will be the 13th plant worldwide to employ our continuous casting and rolling concept. We recognize GGRP as the first Asian producer outside China to adopt this revolutionary method,” said Viehboeck.

Photo caption: Workers conduct final inspections of steel products at a PT Gunung Raja Paksi Tbk GGRP facility in Indonesia, following the agreement signing with Primetals Technologies, on Tuesday, Feb 25, 2025. Photo: GGRP Documentation