Posco committed to boost steel output in RI: Minister
Tuesday, March 14 2017 - 08:21 AM WIB
Minister of Industry Airlangga Hartarto said that South Korea?s steel giant Posco plans to gradually boost steel production at its majority-owned steel plant in Cilegon, Banten Province, to 10 million tons per year by 2025.
Posco, through its 70 percent-owned PT Krakatau Posco, a joint venture with IDX-listed steel maker PT Krakatau Steel Tbk, currently has production capacity of 4 million tons per year.
Airlangga said that Krakatau Poso will increase the annual output gradually to 6 million tons in 2020, which will be further increased to 8 million tons in 2022, and to 10 million tons in 2025.
The production expansion plan follows a roadmap agreed by the Indonesian and South Korean governments during President Joko Widodo?s visit to South Korea in May of last year, which envisions expanding the steel output in Cilegon to 10 million tons to help end Indonesia?s dependency on steel import, a condition seen as hampering the country?s industrialization process.
?Posco is committed to continue the Cilegon cluster roadmap to 10 million tons,? Airlangga said, adding that Krakatau Posco will invest around US$4 billion to finance the expansion program.
Krakatau Posco?s steel plant in Cilegon started operation in the early part of 2014.
Editing by Reiner Simanjuntak