Japan based JFE Steel will construct a new continuous galvanizing line (CGL) for automobiles, a first of its kind in Indonesia with an investment of about $300m.

Located at the MM2100 Industrial Town in the city of Bekasi outside Jakarta, the facility will be built and operated by JFE Steel's wholly owned subsidiary PT. JFE STEEL GALVANIZING INDONESIA.

The new plant is expected to support the company to meet the increase in the domestic demand for automotive steel sheet driven by expansion of the capacity of the automakers and the construction of new plants in the region.

Having a production capacity of about 400,000t per year, the new facility will produce hot-dip galvanized steel sheet for automobiles.

Currently, the company has two CGL for automobiles in Asia including the plants in China and Thailand, while it also offers manufacturing technology for a CGL and related facilities that are operated by its partner JSW Steel in India.