JAKARTA (Yosefardi) – State steel producer PT Krakatau Steel Tbk (KRAS) and Nippon Steel & Sumitomo Metal Corporation (NSSMC) has in August 11, 2014 set up a joint venture (JV) company PT Krakatau Nippon Steel Sumikin (KNSS).
KNSS, with paid up capital of US$142 million, will build its plant in Cilegon, Banten which costs US$300 million, funded by equity and loans.
KNSS produces cold-rolled steel and hot-dip galvanized steel for automotive industry. KNSS’ production capacity is set for 480,000 metric tons per year. The plant is targeted to commence production by mid 2017.
KRAS opts to accelerate its expansion on production capacity as global demand on steel products are growing.