Krakatau Posco plans to produce HRC, CRC

Steel maker PT Krakatau Posco, a joint venture between South Korea?s Posco and IDX-listed steel manufacturer PT Krakatau Steel Tbk, plans to move downstream by producing hot-rolled coil (HRC) and cold-rolled coil (CRC) products, Bisnis Indonesia reported on Thursday.

The paper quoted Director General of Metal, Machinery, Transportation and Electronics Industries at the Ministry of Industry, I Gusti Putu Suryawirawan as saying that the company has reported the plan to the minister.

Krakatau Posco, which is 70 percent owned by Posco, also unveiled plan by the South Korean investor to sell part of its stake in the company to its Indonesian partner PT Krakatau Steel to make the latter become the majority shareholder so that the company would no longer hold the status of foreign investment firm.

Suryawirawan said that the divestment plan was part of the joint venture agreement signed by Posco and Krakatau in 2010. Krakatau Posco currently has a production capacity of 3 million tons per year of slabs and scraps. (*)