Japanese steelmaker Nippon Steel & Sumitomo Metal Corporation (NSSMC) has announced that it has signed a definitive agreement with Indonesia-based PT Krakatau Steel (Persero) Tbk (PTKS) concerning their automotive flat steel products joint venture, PT Krakatau Nippon Steel Sumikin (KNSS).
KNSS will build a galvanizing, annealing and processing line which is a manufacturing line integrating the functions of both a continuous annealing line and a continuous galvanizing line. The new line is equivalent to the state-of-the-art equipment now in operation at NSSMC's steelworks, and which is capable of producing high-grade, high-quality cold rolled, hot dip galvanized, and galvannealed steel sheets, including steel sheets for automotive outer panels and high-strength steel.
The joint venture will produce 480,000 mt of automotive steel per year, with the first production expected in mid-2017.
According to NSSMC, the Indonesian automotive market is expected to grow further in the future and it is expected that automakers' needs for anti-corrosion steel and high-strength steel will also grow.