REPUBLIKA.CO.ID, JAKARTA -- PT Krakatau Steel (Persero) Tbk will form a joint venture company with Nippon Steel & Sumitomo Metal Corporation (NSSMC). The new company named PT Krakatau Steel Nippon Sumikin (KNSS) in Cilegon, Banten, which would produce steel plates for automotive materials.
The joint venture company has actually been established since December 2012. However, the final agreement was signed this week after the approval of both parties. The production capacity reaches 480,000 metric tonnes (MT) per year started in the middle of 2017.
President Director of Krakatau Steel, Irvan K Hakim said that domestic automotive industry would grow in future. Indonesian automotive market prospect are very high. The demand for motor vehicles in Indonesia for example is in line with the economic growth.
"It automatically increases demand for steel plates," Hakim said recently in Jakarta.
Both companies agreed to put a paid of capital of 142 million USD in the new company. NSSMC will have 80 percent shares, while Krakatau Steel 20 percent. The investment value for construction is estimated around 300 million USD.
KNSS will hire more than 280 workers. It has production facility system of galvanizing and annealing processing line (GAPL), an integrated production technology in Japan.
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