JAKARTA (Yosefardi) – State steel producer targets to hold 60% market share of steel industry in the country, helped by the operation of new entity, PT Krakatau Posco, which produce steel plate and slab. The operation of this entity was inaugurated on Monday (Dec 23) by the president Soesilo Bambang Yudhoyono (SBY).
This new entity is a joint venture with South Korea-based Pohang Iron and Steel Company (Posco), with investment cost of US$2.66 billion. The plant of joint venture is located in Cilegon, Banten.
In the first phase, Krakatau Posco will produce 2.4 million tons of steel per year, consisting of 6 plants. The phase 2 will add production capacity of 6 million tons per year with investment cost of US$6 billion.
Krakatau Posco is funded by internal cash of Rp9.5 trillion and export credit agency (ECA) of Rp17.3 trillion. Domestic steel sales is targeted to reach 13.7 million tons this year, a 10% growth compared to 12.5 million tons in 2012.