PT GNI's nickel smelter is located in North Morowali. The company is currently in a transition phase due to the new management being more selective in raw material choices, with production expected to return to normal in April 2025. During this period, employee capability improvement will be carried out. The company has explained the situation to the Ministry of Industry, pledging not to lay off workers or reduce wages. The company denies delaying payments to nickel ore suppliers due to financial issues or production disruptions. The root cause is disagreement between the old and new management over the selection of raw material suppliers; the new management wants to ensure that received raw materials meet requirements. Additionally, PT GNI will obtain new funding sources after the management change, with funding agreements and mechanisms expected to be completed by July 2025, but it is not confirmed whether the new funds or investors mean that the company will no longer be controlled by China's Jiangsu Delong. Previously, there were reports that PT GNI delayed payments to suppliers, leading to inability to obtain nickel ore and potential production stoppages. Its business is also affected by the debt default of its Chinese parent company, Jiangsu Delong. At the end of February, PT GNI stated that the company is in a transition phase, operations are still ongoing, aiming to strengthen its structure to face future industry challenges.
行业快讯
Indonesian Ministry of Industry Responds to Crisis at Jiangsu Delong's Indonesian Nickel Company
PT GNI's nickel smelter is located in North Morowali. The company is currently in a transition phase due to the new management being more selective in raw material choices, with production expected to return to normal in April 2025. During this period, employee capability improvement will be carried out. The company has explained the situation to the Ministry of Industry, pledging not to lay off workers or reduce wages. The company denies delaying payments to nickel ore suppliers due to financial issues or production disruptions. The root cause is disagreement between the old and new management over the selection of raw material suppliers; the new management wants to ensure that received raw materials meet requirements. Additionally, PT GNI will obtain new funding sources after the management change, with funding agreements and mechanisms expected to be completed by July 2025, but it is not confirmed whether the new funds or investors mean that the company will no longer be controlled by China's Jiangsu Delong. Previously, there were reports that PT GNI delayed payments to suppliers, leading to inability to obtain nickel ore and potential production stoppages. Its business is also affected by the debt default of its Chinese parent company, Jiangsu Delong. At the end of February, PT GNI stated that the company is in a transition phase, operations are still ongoing, aiming to strengthen its structure to face future industry challenges.