Hanwa Co. and Yamato Kogyo acquire major stakes in Indonesian steelmaker

Japan's Hanwa Co. announced that it has finalized the acquisition of a 15% stake in Indonesian electric arc furnace-based steelmaker PT Nusantara Baja Profil (NBP). This move is part of a joint acquisition with Japan’s Yamato Kogyo, which involves significant changes for the Indonesian steel company.

As part of the acquisition, PT Nusantara Baja Profil will change its name to PT Garuda Yamato Steel (GYS), effective May 31. Hanwa noted that NBP, which has a steelmaking capacity of 1 million metric tons per year and a rolling capacity of 900,000 metric tons per year, will undergo this rebranding to reflect its new ownership structure.

Yamato Kogyo is acquiring a controlling 80% stake in the mill—45% held directly and 35% through its Thai subsidiary, Siam Yamato Steel. This acquisition, valued at $340 million, is being executed in collaboration with the mill’s owner, PT Gunung Raja Paksi, which will retain a 5% holding in the company.

Hanwa’s stake was acquired through its consolidated subsidiary, PT Hanwa Indonesia. The acquisition, first proposed in August 2023, aims to enhance Hanwa's presence in the expanding Indonesian market. This collaboration with the Yamato group, which operates electric furnace steel manufacturing globally in Japan, the US, and Asia, is expected to bring significant synergies.