Posted on 12 Aug 2014
The agreement was signed by Krakatau Steel President Director Irvan K. Hakim and Nippon Steel & Sumitomo Metal Corporation President & Director Representative Kosei Shindo at Krakatau Steel Building in Jakarta, Monday (8/11/2014).
Krakatau Nippon Steel Sumikin (KNSS) has been established in December 2012 through head of joint venture agreement. As for this final joint venture agreement, it was signed today after talking about the detail of the joint venture terms and conditions.
The KNSS' plant will be established in Cilegon, Banten, with paid-in capital of around US$142 million. NSSMC controls 80% stake in KNSS and PTKS holds the rest. The investment value for establishing production facility may reach US$300 million and absorb 280 workers on operation.
KNSS' business core is producing and marketing steel products of annealed cold-rolled steel and hot-dip galvanized steel for automotive needs. The production capacity reaches 480 million metric tons per year with initial production in mid-2017.
KNSS is established based on optimism from both NSSMC and KRAS that Indonesia's automotive market will continue to grow and develop in the future so that the needs of anti-corrosion steel and high-strength steel for automotive industry will also increase.
KNSS will establish Galvanizing and Annealing Processing Line (GAPL) production facility, which is an integrated production line between continuous annealing process and continuous galvanizing process.
The GAPL technology is the same with the technology in NSSMC's production facility in Japan so it will be able to produce high quality steel products for automotive industry, including outer panel and high-strength steel. Through KNSS, PTKS and NSSMC want to support the growth of national automotive industry.
Editor : Muhammad Sarwani
