Indonesia-based steelmaker PT Krakatau Steel (Persero) Tbk (PT KS) and Japan-based automotive spare parts producer Sango Corporation have signed an agreement, according to which Sango Corporation has agreed to use steel products produced by Krakatau Steel, as announced by media reports.
According to the agreement, Krakatau Steel will produce wire rod from raw materials supplied by Sango and Sango will use the wire rod for the production of automotive spare parts. As a result of this cooperation, Krakatau Steel will produce 40,000 mt of wire rod per year. Production will start early next year.
Media reports has stated that Indonesia’s Industry Minister Airlangga Hartarto has welcomed the agreement, saying that the agreement would increase local content in the automotive industry in Indonesia.