POSCO signs an MOU with Krakatau Steel

POSCO Holdings has entered an agreement with Krakatau Steel for a USD 3.5bn joint project in enhancing steel capacity in the Southeast Asian country.

POSCO has signed a memorandum of understanding (MOU) with Krakatau Steel to build a second furnace and a cold rolling mill for PT Krakatau POSCO, a joint venture between the two steelmakers.

With the construction of the second furnace, PT Krakatau POSCO will be able to boost its annual crude steel capacity to more than 6 million tons. PT Krakatau POSCO is also planning to build facilities that produce automotive steel plates as Hyundai Motor Group is building a manufacturing site in Indonesia and a battery plant with LG Energy Solution.

PT Krakatau POSCO currently operates one furnace with a capacity of 3 million tons and a back plate mill. It plans to add a hot rolling mill in the future.

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