The steel plant Posco Krakatau has been opened in Indonesia

The steel integrated Posco Krakatau Integrated Plant was opened in Tsilegon this week. PT Krakatau Posco is a joint venture between the state steel company PT Krakatau Style (KS) and the South Korean giant became Posco. This is the largest investment project in Indonesia with a total investment of $ 6 billion.

Posco owns 70 percent of Posco Krakatau, and PT KS owns the remaining 30 percent. The full complex will consist of 6 main plants, including an infabriate, a coke -chemical plant, a domain stove, a steel plant, a casting center and a thick -faced mill. The complex will be built in two stages. The first stage has already been commissioned.

The first stage will provide production capacity of 3 million tons of steel per year, and after the end of the second stage it will be increased to 6 million tons per year. Economic indicators secured by the first stage of Posco Krakatau can lead to income of $ 4.7 billion per year and to create 63 thousand jobs. National studies argue that the full completion of the project can provide a value of $ 7 billion and lead to the creation of 149 thousand jobs.

The emergence of PT Krakatau Posco will allow the growing internal demand for steel in the automotive industry from the beginning of 2014, which is supposed to increase to 20 percent from the current 7 percent.

In general, the production of PT Krakatau is 42 percent of the internal steel market. After the construction of a metallurgical plant is completely completed, the market share can reach 60 percent.