Following its recent rollout of numerous sustainability initiatives, the company heads into the year-end with record earnings
JAKARTA, INDONESIA –
Media OutReach – 22 December 2022 – PT Gunung Raja Paksi Tbk (GRP), a member of the Gunung Steel Group and one of the largest private steelmakers in Indonesia today, announced their financial results for third quarter (Q3) of 2022, a record high revenue of US$723 million, a 44% year on year (YoY) since 2021. GRP has also attained a net profit of US$49 million in Q3, a 22% YoY since 2021.
The Indonesian steelmaker has seen export revenue at US$45 million this year, which is 56% YoY increase. This is a testament to GRP’s efforts in expanding its footprint in the international stage, where it has made its mark in key regional markets this year such as the United States (US), Australia, New Zealand and United Emirates Arab (UAE).
This positive performance can be attributed to the company’s investments into modern technologies to increase steel production capacities and cementing its credibility as a sustainable steel manufacturer. Following this, the company has robust plans for 2023 where it aims to channel more investments into its steel production capabilities and green technologies to meet the region’s growing demand for steel and in particular, low carbon steel.
“2022 has been a year of growth and achievements. As we enter the new year, we hope to continue this momentum by setting our sights beyond Indonesia. We are optimistic that we can do so as seen from how our production volume has increased by 36% since 2021, which we believe can address the demand and supply gap of steel in the region,” said Roymond Wong, Director of Finance at Gunung Raja Paksi.
Concluding 2022 with sustainability initiatives In the second year of its new leadership, having transformed from family run to professionally managed, GRP implemented major initiatives in the sustainability space. The most prominent being its Environmental, Social and Governance (ESG) Strategy Handbook and the establishment of its new sustainability department to drive it. GRP has also formed key partnerships with renowned industry players such as Fortescue Future Industries (FFI), Indonesian Chamber of Commerce (KADIN) and TotalEnergies to explore solutions for decarbonisation and facilitate discussions on helping the industry within the region, move towards a more environmentally friendly future.
On the production side, GRP has also been investing in transforming their energy use in their bid towards achieving Net Zero. This can be seen from how GRP has transitioned from traditional blast furnaces and is now operating on Electric Arc Furnace (EAF), which have proven to be less pollutive. It has also commissioned its Light Section Mill (LSM) as part of its efforts to increase efficiencies and lower energy consumption.
“As we journey toward an environmentally conscious world, it is important for businesses to factor sustainability into their business models to become responsible producers. At GRP, we have been investing time and resources into decarbonising our processes and are now proud to call ourselves suppliers of low carbon steel. We hope to see our steel making its way into more green building projects in the region in 2023 and pave the way for other steelmakers to follow suit in their own decarbonisation journeys,” said Tony Taniwan, Executive Committee at Gunung Raja Paksi.
Having participated in the recent Indonesian Iron and Steel Industry Association (IISIA) Business Forum (IBF) which revealed the national agenda to improve Indonesia’s infrastructure and modernise local resources and the development of the new State Capital (IKN) which prioritises green building, GRP aims to supply its low carbon steel products to spearhead infrastructure development for the country and the region.
Meeting the country and the region’s growing steel demands GRP foresees that the country and region’s appetite for steel will continue to rise. According to the World Steel Association, global steel consumption is on course to recover by 1% to 1.81 billion tons despite current economic headwinds in 2023. In Indonesia alone, steel consumption in 2023 is expected to register a growth of 3.5% YoY and Indonesian Finished Steel Demand is expected to reach 20.1 mt. This is driven by construction projects, which contributes to 78% of steel consumption. For instance, the new state capital in Kalimantan (IKN) requires 9.2 million tons of which GRP is confident that they would be able to supply. This is evident from how GRP’s sales volume has increased by 23% from 2021 this year, which highlights the increasing demand for the company’s steel products.
GRP understands that not only the demand for steel is increasing but also steel manufactured from sustainable means to support the building of green cities and infrastructure. As such, GRP has been making efforts to decarbonise production processes and have obtained an environmental product declaration (EPD) certificate. With this credential, GRP has seen successes in breaking into regional markets such as Australia and New Zealand and the United States, and it hopes to broaden its reach to more environmentally conscious markets.
Following GRP’s participation at the IBF, the company is aligned on the Indonesia government’s plans to increase the use of domestic products (P3DN) and the level of domestic components (TKDN). As such, GRP is currently in discussions with the government on formulating policies to protect local steel suppliers in areas such as anti-dumping.
Hashtag: #GunungRajaPaksi
The issuer is solely responsible for the content of this announcement.
About GRP
PT Gunung Raja Paksi Tbk (GRP) is part of the Gunung Steel Group, which is one of Indonesia’s major private steel businesses. Our company began its operations in 1970 in Medan, North Sumatra, by producing hot steel, then progressed to manufacture steel beams and sheets.
With over 50 years of steel industry experience, GRP has a production capacity of 2,200,000 tons of high-quality steel annually approved by local and international certifying company.
Today, our company has become one of the largest private steel companies in Indonesia. Gunung Raja Paksi, “Shaping Tomorrow”. Together we develop a better future.
For more information, please visit: www.gunungrajapaksi.com
Services
Stakeholder mapping, analysis, engagement and communication needs to be detailed to avoid business losses or even worse, a crisis. How can you do this effectively to prevent failure? ...
Data-driven business decisions have never been as crucial, especially in this era. MGBF leverages off, technology, experience and market presence to aid businesses in making accurate decisions. ...
MGBF provides comprehensive strategic advice and results-focused solutions to solve clients' problems in business-government relations so they can focus on their core business. ...
A critical business challenge is meeting the right decision-makers and potential buyers through the best channel and platform. How will you improve your business competency? ...
Upcoming Events
In this episode of 'A Working Lunch with Nordin', MGBF's Nordin Abdullah and regional commentator Eddin Khoo will discuss the biggest threats and opportunities for businesses as we look to manage change in the South China Sea.
This MGBF Roundtable will feature thought leaders form Japan, Australia, Singapore and Malaysia dealing with the critical issues of manipulation of public listed companies and government and their financial impacts.
A series of networking sessions with various business associations and trade organisations exploring high-value opportunities for business leaders and entrepreneurs looking to build the relationships that matter.
This integrated event will include a forum, dedicated business matching, site visits, a gala dinner and a round of golf. Aptly themed, the focus will be on regional food security issues and trends in the context of the supply chain, agriculture technology and trade regulations and policies.
MGBF In The News
Planet QEOS and China Machinery Engineering Corporation (CMEC) are interested in investing RM10 billion to co-develop advanced Megawatt peak (MWp) agrovoltaic in Baram, to further boost Sarawak’s green energy initiative and food security. Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg was briefed on Friday by both the […]
Last week SPM results came out, 373,974 aspirants who have been waiting patiently over the last few months would now know their fate. Some 10,109 have received all A’s, the golden standard of academic success and the ticket to those looking to study the “more advanced” subjects in university. Proudly, […]
The classic knee-jerk reaction is to say, fire the coach, change the leadership of associations, and reduce the funding till they start performing better. This kind of negative reinforcement may work for kindergarten children, but we are dealing with high-performance adults – individuals much further along in their psychological and […]
Since its earliest tea plantations in 1929, Cameron Highlands has grown to become a key player in the agricultural landscape of Malaysia, producing 40 per cent of all vegetables grown. Despite Malaysia shifting its economic focus away from agriculture, the industry remains imperative for food security and the livelihoods of […]
Although at first glance the travel industry and the agricultural sector appear to have nothing in common, they actually share more than meets the eye. The economic benefits of tourism to the agricultural sector can be multiplied several times over. “Tourism brings the end consumers closer to the source, which […]
The Malaysia Global Business Forum (MGBF) recently held a high-level roundtable themed ‘Designing the Future of the Digital Economy’, attended by industry leaders and business associations. The guest of honour was Yang Berhormat Syerleena Abdul Rashid, the Member of Parliament (MP) for Bukit Bendera in Penang. The MP’s Special Session […]
The Malaysia Global Business Forum (MGBF) will be hosting a roundtable on ‘Designing the Future of the Digital Economy’ on 23 February 2023. It is the culmination of the first three MGBF Exclusive Roundtable Series titled ‘The Evolving Threat Matrix in the Digital Economy’ held throughout 2022. According to the […]
The Founding Chairman of the Malaysia Global Business Forum (MGBF), Nordin Abdullah, today spoke on Bernama TV’s leading English talk show, The Brief, hosted by Jessy Chahal, on the topic of a stable political reality and what that means for the Malaysian economy. Nordin said, “The first thing that it […]
More than 1,100 years ago, Muhammad ibn Musa al-Khwarizmi was developing the mathematical formulas that we know today as algorithms which now have become so intertwined with the business fortunes of global media giants and the very fabric of geopolitics. A series of recent high level international reports have revealed […]
KSK Land has been recognised by the Malaysia Global Business Forum (MGBF) for its role in attracting high net-worth individuals to Malaysia post-pandemic. The first challenge in investor attraction is “selling” the country. In the context of Asia, Malaysia is competing with some very established investment destinations. The second […]
Malaysia, in particular Kuala Lumpur, continues to position itself as a regional centre to do business, educate a family and enjoy a global lifestyle. One company, KSK Land, has taken the lead in positioning itself and the city of Kuala Lumpur as a property investment destination for the global citizen […]
The upcoming budget represents an opportunity to build resilience in the critical sectors that will form the backbone of the country’s future-facing economic ambitions. This however needs to be achieved in the context of managing the community sectors most impacted by COVID-19 over the past two years. The Keluarga Malaysia (Malaysian Family) […]
Malaysia Global Business Forum (MGBF) has moved to support the creative economy as the overall economy moves into a recovery phase following the COVID19 pandemic. As a step in the direction of normalcy, the MGBF has agreed to host the art exhibition “I Know You’re Somewhere So Far” by one […]
Congratulations to Datuk Seri Ismail Sabri Yaakob for taking up the mantle of the ninth prime minister of Malaysia. There is nothing normal about the situation; it could not have been scripted but it has kept the spectrum of media, mainstream and social, gripped. The first order of business for […]
In a stirring speech to the nation, President Joseph R. Biden, Jr. stamped his brand of leadership on the presidency, in his first act as the 46th president of the United State of America, it signaled several shifts. Perhaps the weather was foreboding with snow falling before the ceremony that […]
KUALA LUMPUR, 6 July 2022 – As the global economy continues to deal with unprecedented levels of disruption caused by the pandemic and the conflict between Russia and Ukraine, the convergence of energy security and food security issues has become a front-of-mind issue faced by policy makers and consumers alike. […]
KUALA LUMPUR, 23 June 2022 — Malaysia Global Business Forum (MGBF) ties up with scoutAsia to ensure that businesses are equipped with deeper regional insights. The past two years has seen a massive shift in the way businesses are conducted with digitisation, digitalisation and automation continuously being adopted to improve […]
KUALA LUMPUR, 25 May 2022 – The Malaysia Global Business Forum (MGBF)’s exclusive roundtable on ‘Security Concerns in Critical Value Chains’ was held in a hybrid setting yesterday at the Eastin Hotel Kuala Lumpur. The guest of honour was Yang Berbahagia Tan Sri Dato’ Seri Rafidah Aziz, former minister of […]
We live in the age of crisis. At the heart of any crisis is the threat of rapid change. Change too deep or too wide that the current coping mechanisms for an individual, corporation or government are unable to remain resilient. An unwelcome paradigm shift, like the proverbial spider, that […]