Dexin Steel has signed a US$100 million loan agreement with UOB Indonesia to support its production capacity expansion and decarbonization efforts. Financing is a critical component of Dexin's growth strategy as it transitions toward more sustainable steel production.

In September last year, Dexin Steel completed the first phase of its expansion, increasing production capacity to 6 million tons of iron and 7 million tons of crude steel annually. This year, the company released its first ESG report, outlining plans to peak Scope 1 and Scope 2 carbon emissions by 2025 and achieve carbon neutrality by 2058.

Dexin Steel is shifting from traditional blast furnace steelmaking to electric arc furnace (EAF) technology as part of its sustainability goals. Key measures include adopting renewable energy, participating in carbon trading, utilizing bioenergy, implementing carbon capture, utilization, and storage (CCUS) technologies, and exploring hydrogen energy solutions to reduce emissions.

The loan reinforces Dexin Steel's commitment to balancing production growth with environmental responsibility, positioning the company as a leader in Indonesia's green steel transformation.