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Posco will stay with us: Krakatau Steel
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A worker looks at a metal furnace at a PT Krakatau Posco plant in the Krakatau Steel industrial area in Cilegon, Banten, in this 2015 file photo. (Kompas/Iwan Setiyawan)
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tate-owned publicly listed steel company PT Krakatau Steel has denied a rumor that Korean steel company Posco will withdraw its investment in the joint venture PT Krakatau Posco. The joint venture has recently booked losses.
The joint venture, established in 2010, is 70 percent owned by Posco and 30 percent owned by Krakatau Steel. According to Posco's latest consolidated report, the company has recorded US$39.3 million in losses, compared to $71.6 million in losses recorded in 2015.
"The operations of the company [Krakatau Posco] are excellent. However, the low price is a big hindrance," Krakatau Steel president director Sukandar said at a shareholder’s meeting at Bidakara Hotel in Jakarta on Thursday.
"Posco is still our partner and the partnership has been strengthening," he said.
Krakatau Steel and Krakatau Posco signed up to build a hot strip mill plant on May 12 with Rp 6.2 trillion ($467.66 million) in investment. Krakatau Steel has also secured $260 million in financing from Germany’s Commerzbank for the project. (evi)
