Source: The Jakarta Post
The Industry Ministry has said PT Krakatau Nippon Steel Sumikin (KNSS) will start operating its galvanized steel plant in Cilegon, Banten, in September.
The ministry’s director general for metal, machinery, transportation equipment and electronics industries, I Gusti Putu Suryawirawan, said on Friday that the plant would have an annual production capacity of around 500,000 tons.
Putu spoke to journalists after accompanying Industry Minister Airlangga Hartarto in a meeting with managing director Yoichi Furuta of Nippon Steel & Sumitomo Metal Corporation (NSSMC) in Jakarta.
KNSS, established in late 2012, is a joint venture between NSSMC and state-owned steel maker PT Krakatau Steel. KNSS says on its website that with the partnership, the two companies aim to manufacture and market cold-rolled steel and hot-dipped galvanized steel products for Indonesia’s automotive industry.
Investment for the plant, which is expected to employ at least 300 people, is estimated at US$400 million.
Putu said Indonesia, which recorded sales of approximately 1 million cars a year, had until now imported galvanized steel sheets for car manufacturing owing to limitations in domestic supply.