Pohang Iron and Steel Company (Posco), the world's second biggest steel company from
The Industry Ministry’s director for metal industry, I Putu Suryawirawan, said Posco will involve state-owned steelmaker PT Krakatau Steel in the construction of a
The new plant is projected to have installed capacity of 2.5 million tons per year and require up to 500 MW of electricity.
Krakatau Steel president director Fawzar Bujang said at least $2 billion will be invested in the project.
The funds will be used to build a blast furnace facility and other infrastructure including a new port capable of accommodating ships with loads of up to 200,000 tons of raw material.
Bujang said that if things go smoothly, a memorandum of understanding between the two companies would be signed before this year's end at the earliest.
Posco would control a majority 60% of shares and the rest would be held by Krakatau Steel.
According to Krakatau Steel data, domestic production of hot rolled plate and hot rolled coil was 2.1 million tons last year or 67.1% of 3.12 million tons of installed capacity, while the consumption was estimated to reach 3.2 million.
