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China's Anshan Iron and Steel Group, or Angang Group, plans to build an iron and steel plant with an annual output of 5 million tons in Indonesia, which is expected to be the largest steel plant in the country, Indonesian media reported on June 27.

The Morowali Industrial Park in Central Sulawesi, where Angang Group will settle, focuses on smelting ferronickel and other metals. When the project is finished, the plant will be the largest steel plant in Indonesia, replacing PT Krakatau Steel with 3.5 million tons per year.

Recently, Angang Group has investigated Indonesia several times, meeting with local enterprises and learning investment procedures, said an Indonesian Ministry of Industry official.

Apart from the steel plant, Indonesia also hopes Angang Group will produce downstream steel products, so as to improve the development of its heavy industry.

The foreign investment of Angang Group follows official cooperation agreements; though it plans to invest in Indonesia and other countries, specific decisions haven't been made yet, according to insiders.

Angang Group intended to build a steel plant in the United States, but the plan didn't carry out due to opposition from the US Congress.