CNGR Advanced Material Co. is considering an 80 percent stake acquisition in PT Gunbuster Nickel Industry (GNI) from Jiangsu Delong, a move that could reshape Indonesia’s nickel sector, Bloomberg reported. Initial exploratory talks suggest the deal might proceed after GNI completes a corporate restructuring scheduled for early next year, though sources close to the discussions emphasize that final terms remain unreached.
Stake Acquisition Plans and Market Impact
The potential transaction positions CNGR to rival major industry players like Tsingshan Holding Group Co. in Indonesia’s nickel sector. Bloomberg noted that early-stage negotiations do not guarantee a finalized agreement between the parties.
CNGR has steadily expanded its foothold in the Indonesian market through various corporate vehicles. Data from IDNFinancials.com shows that CNGR acquired a controlling interest in PT Abadi Nusantara Hijau Tbk (PACK) in late 2024 by purchasing nearly 50 percent of its shares through PT Eco Energi Perkasa. By September 2026, Eco Energi Perkasa’s ownership stake in PACK decreased to 38.5 percent. Samsudin Andi Arsyad, commonly known as Haji Isam, holds 20.04 percent, while public investors retain the remaining 41.32 percent. Following CNGR’s market entry via Eco Energi Perkasa, PACK’s share price climbed by more than 200 percent over a one-year period, with Den Weiming listed as the ultimate beneficiary of the shares.
Smelter Closures and Operational Cutbacks
In August 2026, GNI announced the temporary shutdown of two out of its three nickel smelters located in North Morowali, Central Sulawesi. The closures triggered approximately 1,900 layoffs as the company faced debt-payment suspension lawsuits under Indonesia’s PKPU legal framework.
Management stated in an official August statement that restricted financial capacity made it difficult to fulfill various operational requirements. The facility originally targeted an annual production of 1.8 million to 1.9 million tons of ferronickel or Nickel Pig Iron (NPI). To reach that volume, the plant required an estimated 21.6 million wet metric tons of nickel ore raw material annually. Despite operating with a single active smelter, GNI confirmed it will maintain limited operations at the site.
Frequently Asked Questions
When could the GNI acquisition agreement be finalized?
Discussions remain preliminary, and sources indicate that any final transaction would likely occur after GNI finishes its structural reorganization early next year. No binding agreement has been signed.
How many workers were affected by the recent smelter suspensions?
GNI’s decision to temporarily shutter two of its three processing plants in North Morowali led to the layoff of approximately 1,900 employees.
What is the current ownership structure of PT Abadi Nusantara Hijau Tbk?
PT Eco Energi Perkasa holds 38.5 percent of PACK shares, Samsudin Andi Arsyad holds 20.04 percent, and public investors control 41.32 percent, following CNGR’s initial investment in the company.
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