In order to jointly develop a blast furnace and cold rolling plant in Indonesia, state-run steelmaker Krakatau Steel and South Korean steel company Posco have signed a memorandum of agreement.
Although the breakdown of costs has not been made public, the two corporations committed to invest USD 3.5 billion in the project over the following five years.
According to a statement from the Indonesian government, the expansion would also involve the manufacture of automotive steel for electric cars (EVs).
In Krakatau Posco, a 70-30 integrated steel factory owned by Posco and Krakatau Steel, the blast furnace and cold rolling mill will be situated. The mill is situated in Cilegon, northwest Java, which already has a blast furnace running with a 3 million ton capacity annually.
The capacity will increase to 6 million tons with the installation of the new blast furnace, according to Posco.
Posco CEO Kim stated, "With the assistance of the Indonesian government and Krakatau Steel, Posco is now able to build the second blast furnace at our first overseas integrated steel factory.
The materials and information on this article have been prepared or assembled by Viet Nam Steel and are intended for informational purposes only.