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Delong's Indonesian steel project to be delayed to June 2019 from end-2018
CHINESE steelmaker Delong Holdings announced on Thursday delays in construction of its mega steel plant at the Indonesia Morowali Industrial Park, which will lead to the plant becoming fully operational at end-June 2019.
The company's annual report for 2017 had said it expected the joint venture project, which had an initial investment of US$950 million, to be completed and be operational by late 2018.
Delong said the project faced delays in deliveries by suppliers and a shortage of steel-related skilled labour for the project, which will have an annual production capacity of 3.5 million tonnes.
Delong holds 45 per cent of the joint venture with Shanghai Decent Investment (Group) and that company's subsidiary Indonesia Morowali Industrial Park.
The company said these parties are all "working together to help the joint venture company address the above issues".
Delong closed on Thursday at S$6.55, up S$0.010 or 0.15 per cent before the announcement.