DEXIN Steel has signed a USD 100 million loan agreement with UOB Indonesia to expand its production capacity and accelerate its sustainable steel production goals. The agreement was made official at a ceremony held at the UOB Tower in Jakarta on December 11.
At the ceremony, Liu Hao, Deputy General Manager of Finance of DEXIN Steel, and Harapman Kasan, General Manager and Head of Wholesale Banking of UOB Indonesia, represented their institutions by signing the agreement.
The loan agreement highlights UOB Indonesia's position as the first major Southeast Asian international bank to extend financing cooperation to DEXIN Steel outside of traditional syndicated banking channels. Liu Hao emphasized that this collaboration will increase mutual trust and create the groundwork for regional collaborations.
DEXIN Steel aims to accelerate its sustainable growth strategy with this financing. The company completed the first phase of its expansion plan by increasing its annual capacity to 6 million tons of iron and 7 million tons of crude steel in 2022. Committed to ESG (environmental, social and governance) goals, DEXIN Steel plans to peak Scope 1 and Scope 2 carbon emissions by 2025 and become carbon neutral by 2058.
DEXIN Steel aims to reduce carbon emissions by switching from traditional blast furnace production to electric arc furnace (EAF) technology. It is also moving towards sustainability with innovative solutions such as carbon capture, bioenergy and hydrogen energy.
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