PT Ceria Nugraha Indotama, an Indonesian nickel company, plans to expand its ferronickel capacity despite predictions of a global nickel market oversupply.

In late April, the company commissioned its Rectangular Rotary Kiln Electric Fire, capable of producing 63,200 tons of ferronickel annually. The planned expansion, requiring an estimated US$200 million investment, would similarly increase production.

Corporate Secretary Imelda Kiagoes said they planned to begin construction this year if everything proceeds as expected, and they are currently seeking strategic funding from financial institutions.

Although industry analysts foresaw continued nickel oversupply due to capacity expansion and slower demand growth in the stainless steel and battery sectors, Kiagoes pointed out sustained demand for Ceria’s 22% nickel concentration product in Europe and America.