This file photo taken Aug. 27, 2020, shows South Korean steelmaker POSCO’s factory in Pohang, 374 kilometers southeast of Seoul. (Yonhap)
SEOUL, July 28 (Korea Bizwire) — POSCO and Indonesia’s state-run steelmaker Krakatau agreed on Thursday to spend US$3.5 billion over the next five years on building a second furnace in the Southeast Asian country to meeting growing demand.
POSCO and Krakatau already run PT.KRAKATAU-POSCO, their joint venture located in the major industrial city of Cilegon to the west of Jakarta with an annual capacity of 3 million tons and a steel plate-processing plant.
When the second furnace is completed, PT.KRAKATAU’s annual output will rise to 6 million tons, according to POSCO.
The capacity expansion at PT.KRAKATAU will also include the production of automotive steel.
In 2013, POSCO started operations of PT.KRAKATAU three years after the two established the joint venture, with the South Korean firm holding a 70 percent stake.
(Yonhap)
