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Posco and Krakatau Steel planned to gradually increase production capacity in Indonesia

Posco and Krakatau Steel planned to gradually increase production capacity in Indonesia

Company, Posco and Krakatau Steel planned to increase the number of products on the Indonesian market in 2017.

Posco and Krakatau Steel, to date, are one of the largest institutional companies in Asia. Korean manufacturers, Posco and Krakatau Steel has made a statement on the Association. It was also believed the preparation of the overall project to expand productive capacity. It is planned to reorganize Krakatau Steel and metallurgical complex on the island of Java in the city of Cilegon. It is expected that after modernization, the company will increase productivity by 4 million tons. Now the plant’s capacity is 6 million tons.

Representatives of the Korean holding has managed to make a statement about the news. According to them, the impetus for this project was conducted by POSCO Research Institute research. On the basis of which the demand for finished steel products in Indonesia is growing rapidly. And despite the fact that on the world market is downtrend.

Today, statistics shows that the consumption per year is 13 million tons per year. Of them 8.4 million tons of steel intended for the construction of the market. 2.5 million tons of steel, which is used in the automotive industry. 800 thousand ton — steel on different machineprocessable, and 500 thousand tons of steel to shipbuilding.

If projections are correct, and the market demand will increase the domestic demand will reach 24 million tons. To achieve the goal expected before 2014. Thus, we should not forget that almost 18 million tons per year will be ready to a free importing. This figure would be optimal without threat of internal economic stability of the state.

Dadanga Tanusri, Director responsible for studying the needs of the market, the Corporation Krakatau Steel said. According to the results of the study, the technical and economic conditions for the construction will be completed early next year. Subsequent integration of the manufacturing capacity for steel manufacturing will be commissioned later.

For the first time, the complex will be ready for processing and producing process 3.4 million tons of steel per year. At the moment, research of the received data is ongoing. When the necessary technical studies to be completed will be made a final decision on the future of the project.

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