I'm LongbridgeAI, I can summarize articles.Chinese logistics firm Hengtong plans to invest up to CNY2 billion (USD295 million) in a smart logistics park in Indonesia. This project supports its controlling shareholder, Nanshan Group's, overseas expansion strategy. The park will utilize big data and cloud computing to enhance logistics efficiency and include energy storage infrastructure. The investment aligns with Nanshan's goal to establish an integrated industrial ecosystem in Indonesia, driven by growing demand from its existing aluminum operations there.
(Yicai) July 13 -- Chinese integrated logistics firm Hengtong Logistics plans to invest up to CNY2 billion (USD295 million) to develop a smart logistics industrial park in Indonesia, supporting the overseas expansion of its controlling shareholder, aluminum producer Nanshan Group.
The industrial park, which will be located in the Karakang Batam Economic Special Zone on Bintan Island, is expected to cost no more than CNY2 billion, with the first phase capped at CNY600 million (USD88.4 million), Hengtong, which specializes in road transportation, port operations and bulk commodity trading, said yesterday.
The industrial park will feature a cloud computing platform and use big data technologies to centralize information storage and processing, improving intelligent logistics management and transportation efficiency, the Yantai-based firm said. It will also include 50 to 100 megawatts of energy storage capacity and 70 to 140 megawatts of diesel power generation to provide the infrastructure needed for future data center projects.
The investment is driven by Hengtong's business development needs and overseas layout strategy, the company said. Nanshan, which acquired Hengtong in 2020 and held a 42 percent stake as of March 31, has already established an industrial cluster on Bintan Island through its subsidiary Nanshan Aluminium, which has invested in alumina refining and aluminum smelting projects there. Those operations have created growing demand for smart logistics and data services.
Nanshan aims to establish Indonesia as a flagship model for its overseas expansion by creating an integrated industrial ecosystem that brings together multiple industries and several of its listed companies, Vice Chairman Song Yinghao said at an investor event in May. The group's strategic goal is to "build another Nanshan Group in Indonesia," he added.
In January, Nanshan Aluminium said it would invest USD436.6 million to build a second electrolytic aluminum smelter in Indonesia with an annual output of 250,000 metric tons. The Longkou-based company also operates alumina production facilities in the Southeast Asian country with an annual capacity of 4 million metric tons.
Hengtong, which was founded in 2007, is expecting net profit to surge between 67 percent and 104 percent in the first half from the year before to reach between CNY166 million (USD24.5 million) and CNY203 million (USD29.9 million), thanks to the strong growth of its port business, according to the company’s latest earnings forecast.
Editor: Kim Taylor