The largest South Korean steelmaker POSCO may invest about $5 million in the construction of a new steel mill in Indonesia, in order to expand its influence into the growing Southeast Asian market.
According to local reports, POSCO intends to set up a new steel mill with a production capacity of 2.6-3.1 million mt per year, which will be built in Cilegon, in the province of Banten.
POSCO has started talks with Indonesian state-owned steel producer Krakatau Steel for further cooperation on the project, which includes the usage of Krakatau's infrastructure for the new facility. However, no official letter of proposal has yet been submitted to the Indonesian steelmaker.