A New Chapter Begins: GRP Successfully Completes Investment Partnership in its Structural Steel Business, GYS, with YKC, Hanwa & SYS.

PT Gunung Raja Paksi Tbk ("GRP") and its affiliated company, PT Gunung Garuda (“GRD”) have successfully sold a 95% stake in PT Nusantara Baja Profil (“NBP”) to Yamato Kogyo Corporation (“YKC”), Siam Yamato Steel (“SYS”), and Hanwa Indonesia (“HWI”), a subsidiary of Hanwa Co., Ltd. NBP will now operate as Garuda Yamato Steel ("GYS").

Overview of Transaction

GYS, involved in the Structural Section Steel Business, has an annual production capacity of 1 million tonnes and a rolling capacity of 900,000 tonnes. Prior to the sale, GRP and GRD held 81.07% and 18.93%, respectively. Post-sale, GRP retains 5%, with YKC holding 45%, SYS 35%, and HWI 15%. The transaction, valued at $450 million, highlights the potential of the Indonesian steel market, providing a significant premium to GRP's market capitalization.

The deal, completed in a volatile post-COVID market, showcases GRP's resilience and commitment to value creation. Since 2020, GRP has pursued strategic policies in change management, digital transformation, and sustainability, enhancing its competitiveness and aligning with a low-carbon future.

Strong Collaboration with Strategic Partners

“With the collective financial strength and operational expertise of our investment partners, GYS is well-positioned to be the leading structural steel company in the region,” said Tony Taniwan, newly appointed President Director of GYS. Tony brings over two decades of steel industry experience and serves as Vice Chairman of the Indonesian Iron & Steel Industry Association (IISIA).

The acquisition aligns with YKC, SYS, and HWI's strategic vision to expand in Southeast Asia. With projected national steel consumption growth and significant construction projects, including the Nusantara Capital development, GYS is poised to support Indonesia's infrastructure needs. The investors' expertise in the structural steel business, global procurement, marketing networks, and financial strength will drive growth and synergy.

“This strategic realignment not only creates tangible value for shareholders but also reinforces GRP's financial position,” said GRP’s Finance Director Roymond Wong.

A Green Future Ahead for the Flat Steel Business

Post-transaction, GRP will focus on transforming its flat steel business to become the region's lowest carbon-emitting steel producer. This includes significant investments in advanced, energy-efficient, low-carbon steel-making technologies and developing Indonesia's green steel standards.

“Our vision for GRP lies in green steel, supporting Indonesia’s goal of net-zero emissions by 2060,” said Kimin Tanoto, Chairman of the Executive Committee. “Going green is a smart business strategy leading to increased profitability, attracting top talent, and market competitiveness.”

"The completion of this transaction is a culmination of GRP's transformational journey," said Kelvin Fu, Strategic Advisor of GRP. "We appreciate the unwavering support from our Japanese and Thai partners and remain committed to innovation, sustainability, and growth for all stakeholders."