China's CNGR Advanced Material Co is in talks to acquire an 80% stake in PT Gunbuster Nickel Industry, a major Indonesian nickel smelter. The move could make the battery materials producer one of the largest players in Indonesia's nickel smelting industry.
If completed, the deal would position CNGR as a competitor to industry giant and fellow Chinese company Tsingshan Holding Group Co in Indonesia. Indonesia is the world's largest producer of nickel metal--used in stainless steel and electric vehicle batteries--accounting for more than 60% of global supply.
However, strict mining quota restrictions and nickel demand conditions have led to the closure of several smelters in the country. Gunbuster was placed under a temporary suspension of debt payment obligations (PKPU) by an Indonesian court in June, after cutting production last year.
"As a company deeply involved in the global nickel industry, CNGR continuously evaluates various potential strategic opportunities in its daily business activities," the Chinese company said in a written response via email. It declined to comment specifically on the Gunbuster acquisition, citing the Indonesian company's ongoing PKPU process. Gunbuster did not respond to a request for comment.
The plant, located on Sulawesi Island and inaugurated in 2021 by then-President Joko Widodo, was once a symbol of Indonesia's rapid nickel sector growth before facing overcapacity and a series of workplace accidents, some of which were fatal. Its annual capacity of about 1.8 million tons of nickel pig iron makes it one of the country's largest independent smelters.
Gunbuster has also been affected by the restructuring of an affiliate belonging to Chinese conglomerate Jiangsu Delong Nickel Industry Co, which was once one of the world's leading stainless steel companies before falling into bankruptcy.
CNGR already holds controlling stakes in several nickel smelters in Indonesia, including PT Nadesico Nickel Industry, located near Gunbuster.
