South Korean steelmaker Posco said it plans to build a steelworks in Indonesia with steelmaker Krakatau Steel
Krakatau Steel, based in Indonesia, has a production capacity of 2.4Mt/y and holds about 60% of the Indonesian market for steel plates. It was established in 1970.
Officials said that the deal will help Posco expand its market presence in the southeastern Asian market, which imports about 30Mt/y of steel products. The two steelmakers will build an integrated steelworks with a 6Mt/y production capacity in Cilegon located in the north of Java Island.
The first stage of the project, the construction of facilities capable of producing 3Mt of crude steel, will begin during the second half of 2011. This stage of the project is scheduled for completion at the end of 2013.
The new steelworks will be located within Krakatau Steel’s existing facilities in the region, allowing the company to cut initial investments and bring the facilities to full operations quickly.