Krakatau Steel to sign jv deal with S. Korea`s Pohang

Jakarta (ANTARA News/Asia Pulse) - Indonesian state-owed company PT Krakatau Steel will sign a joint venture agreement with South Korea's steel giant Pohang Iron and Steel to build a US$5 billion steel plant in the country.

Krakatau President Fazwar Bujang said the country's largest steel maker would take up to 45 per cent stake in the venture.

The US$5 billion plant will be built in its vast Cilegon Industrial Complex, Banten, Bujang said, adding it should boost Krakatau's production capacity to 3.5 million tons a year from 2.5 million tons at present.

The deal is expected to be finalized by the end of the month, he was quoted as saying by the newspaper Jakarta Globe.

Source:
Business in Asia Today - Nov 5, 2009
published by Asia Pulse