Krakatau, Nippon Steel to set up manufacturing plant
Tuesday, August 12 2014 - 12:51 AM WIB
IDX-listed steel maker PT Krakatau Steel Tbk said it would set up a steel manufacturing plant in Cilegon, Banten, with Japan?s Nippon Steel & Sumitomo Metal Corp to produce cold-rolled steel and hot-dip galvanized steel products for the domestic automotive industry.
The two companies signed on Monday final agreement regarding their joint venture company PT Krakatau Nippon Steel Sumikin (KNSS) set up in December 2012 to produce and sell steel products for automotive use.
Krakatau said in a statement that the US$300 million steel plant is expected to start operation in the middle of 2017. It did not say when construction of the 480,000-ton per year capacity plant would start.
Nippon Steel owns 80 percent stake in KNSS, while the remaining 20 percent is held by Krakatau.
Editing by Reiner Simanjuntak