Japanese and Indonesian companies set up a joint venture to build a steel plant

Indonesian steel company PT Krakatau steel and Japanese company Osaka Steel signed a declaration on a new joint venture, PT Krakatau Osaka Steel. The deal was signed by the presidents of the companies who consider the creation of the joint venture very timely, as there is an increase in demand for steel from the construction sector, progressing with a large number of construction projects.

The new joint venture, Krakatoa Osaka Steel is located in the Krakatoa industrial zone, which is located in Cilegon, a coastal industrial city in Banten province. In the new joint venture Krakatau Osaka Steel, about 80 percent of the shares are owned by the Japanese company Osaka Steel, and the remaining 20 percent is owned by the Indonesian company Krakatau Steel.

The joint venture, with an investment of around $ 200 million, is expected to begin production in 2016. Krakatoa Osaka Steel expects to sell about 500 thousand tons of steel per year and will create jobs for 170 people at the initial stage. Creation of JV Krakatoa Osaka
Steel for Japanese Osaka Steel is the company's initiation into overseas business expansion. Currently, this strategy is followed by the entire metallurgical sector in Japan.

Irvan Hakima, director of JV Krakatau Osaka Stal, is optimistic about the future, believing that growth in the Indonesian market will continue to increase in the future. He stated that the established joint venture has been eagerly awaited in the country by various industrial sectors that need steel products.