Posted on 29 Jul 2022
PT Krakatau Steel (PTKS) and Posco plan to raise the production capacity of a joint venture steelworks between the two companies over the next five years, Kallanish understands.
The Indonesian and South Korean steelmakers entered into a memorandum of understanding on Thursday to spend $3.5 billion to raise the capacity of PT Krakatau Posco to 10 million tonnes/year, comprising upstream and downstream steel products, PTKS says.
The expansion will involve the installation of a second blast furnace and cold rolling mill at Krakatau Posco's plant located at Cilegon in northwestern Java, according to Korean media reports. Posco Krakatau is currently operating a blast furnace with 3m t/y capacity, while the new blast furnace will raise capacity to 6m t/y.
The investment would enable Krakatau Posco to produce high value-added steel products including automotive steel for electric vehicles to support Indonesia’s goal to be a regional base for the automotive industry, according to PTKS. Posco is also involved in a $9.8 billion project to create an electric vehicle supply chain in Indonesia, which will utilise the country's nickel resources. This project is being led by LG Energy Solution, also from South Korea.
Source:Kallanish
