Krakatau to build new steel plant with Osaka Steel
Tuesday, September 9 2014 - 12:51 AM WIB
IDX-listed steel giant PT Krakatau Steel Tbk and Japan?s Osaka Steel Co. Ltd. have recently signed an agreement to set up a joint venture called PT Krakatau Osaka Steel.
Krakatau Steel President Director Irvan K. Hakim said on Monday that investment in the new steel plant was based on optimism that the steel market in Indonesia would continue to grow particularly to meet demand from the construction sector.
The steel plant will be located at the Krakatau Industrial Zone in Cilegon, Banten Province. The Japanese steel-maker owns 80 percent of shares and Krakatau Steel has the remaining shares.
With an investment of US$220 million, the joint venture is expected to begin operations in 2016. It aims to sell 500,000 tons of steel per year and to employ around 170 employees. The joint venture with Krakatau Steel is Osaka Steel?s first overseas business expansion.
Editing by Reiner Simanjuntak