Krakatau Steel, Southeast Asia’s largest steelmaker, plans to spend Rp6.5tr (US$674M) in capital expenditure this year. This year’s investment will be half that of the Rp13tr it set aside for last year.

Irvan K Hakim, president director of Krakatau Steel, said the company would focus on building existing projects which include revamping its slab steel plant which is expected to produce 2.Mt/y.

The company is also focusing on its $6bn integrated plant, a joint venture project with South Korea’s Posco, the world’s third-largest steel producer. Irvan said that the company needs $3bn in funds for its first stage investment. The jv plant is expected to start production in 2014.

The company has also signed an agreement with Osaka Steel to create a joint venture called Krakatau Osaka Steel. That enterprise will produce steel for the infrastructure and construction sectors.

Krakatau will own 49% of the joint venture and Osaka Steel will control 51%. The factory will also be located in Krakatau Industrial Estate, Cilegon.

Osaka Steel Corporation is a subsidiary of Nippon Steel & Sumitomo Metal Corporation.

Krakatau Steel has six production plants in total.

Abstracted from Daily ‘The Jakarta Globe’, Jakarta; 18 Jan 2013