Merukh Enterprises subsidiary PT Merukh Iron and Steel plans to invest €35bn ($48bn) to build two iron ore plants in Sumba Timur and Sumba Barat in East Nusa Tenggara, Indonesia.

The plants will be built in collaboration with Paul Wurth of Luxembourg and Germany’s SMS Siemag, reports the Jakarta Post.

Merukh Enterprises president director Rudy Merukh told the Jakarta Post that €20bn ($27bn) will be invested in the construction of the two plants.

The rest of the investment will used for basic infrastructure including electricity installations, water plants, offices and a port, according to Merukh.

The plants are scheduled to begin commercial production in 2015, with capacity of 3.5 million tons per annum.