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Krakatau Steel prepares 500 ha in Cilegon for China’s Delong Steel
The plant is also expected to begin producing so-called green steel, in line with current trends toward for lower-emission manufacturing processes.
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Krakatau Steel employees watch the production of the first hot rolled coil (HRC) steel on May 17, 2021, in the company's second hot steel mill in Banten. (Courtesy of Krakatau Steel)
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tate-owned PT Krakatau Steel is allocating over 500 hectares of land in its Cilegon Industrial Estate to support a potential investment by China's Delong Steel Group, one of the world’s largest steel producers, through its local subsidiary PT Dexin Steel Indonesia.
Krakatau Steel President Director Akbar Djohan said that the land, provided by its subsidiary PT Krakatau Sarana Infrastruktur, is ready for the project, which would mark a significant expansion in Indonesia’s steel industry.
The plant is also expected to begin producing so-called green steel, in line with current trends toward for lower-emission manufacturing processes.
“Our core vision is to revitalize the national steel industry and position Cilegon as a benchmark for environmentally friendly steel production in Southeast Asia,” Akbar said in a statement issued on Monday.
Read also: Steelmakers blame imports from China for plummeting sales
The move follows a visit by Krakatau Steel officials to China in May to sign a memorandum of understanding (MoU) on raw material procurement and explore cooperation. Delong representatives visited Cilegon visit on June 3 to assess the proposed site and tour existing infrastructure, including Krakatau Steel's port and production facilities.
A follow-up business meeting on June 5 focused on the proposal to build an integrated steel plant with a production capacity of 3 million tonnes annually.
