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Krakatau Posco's $3.5b steel mill project to finish construction by 2027
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The ASEAN-Republic of Korea Business Forum takes place in Jakarta on Thursday. (Mission of the Republic of Korea to ASEAN/Mission of the Republic of Korea to ASEAN)
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teelmaker PT Krakatau Posco, in cooperation with state-owned PT Krakatau Steel (KRAS), is set to expand to the second phase of an integrated steel mill project in a bid to capture the Southeast Asian electric vehicle (EV) market.
The steel mill project, which will include a blast furnace, is worth approximately US$3.5 billion and is expected to finish construction in 2027. It is part of both companies’ efforts to establish a steel complex with an annual output of 10 million tons in Cilegon, Banten.
Choi Busik, senior economist at Posco Research Institute, said the joint venture aimed to build an EV value chain in Indonesia by supplying battery materials and EV auto steel from South Korean steel giant Posco.
“To serve Indonesia and the ASEAN market, Krakatau Posco will expand to the second phase,” he said at the ASEAN-Republic of Korea Business Forum in Jakarta on Thursday.
Krakatau Posco, established in 2010, is 70 percent owned by Posco and 30 percent owned by KRAS.
Read also: Hot stripped mill to be operational by 2019
Busik said that after the second phase of the expansion, Krakatau Posco would provide most of the semi-finished products to the company’s operations across Southeast Asia.
