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JAKARTA. State-owned steel company PT Krakatau Steel and Japan’s Osaka Steel Co. Ltd. have signed an agreement on the formation of a joint venture called PT Krakatau Osaka Steel. The agreement was signed by Krakatau Steel president director Irvan K. Hakim and his Japanese counterpart Junji Uchida on Sept.2.
Irvan said the joint venture was based on optimism that the steel market in Indonesia would continue to grow. “This joint venture aims at fulfilling the demand from construction projects,” he added.
PT Krakatau Osaka Steel is located in the Krakatau Industrial Zone in Cilegon, Banten. The Japanese steel-maker owns 80 percent of shares and Krakatau Steel has the remaining shares.
With an investment of US$200 million, the joint venture is expected to begin operations in 2016. It aims to sell 500,000 tons of steel per year and to employ around 170 employees. For Osaka Steel, the joint venture with Krakatau Steel is its first overseas business expansion.
