The world's fifth largest steel producer Tata Steel and fellow Indian producer Essar Steel are interested in acquiring a stake in Indonesia's state-owned steelmaker PT Krakatau Steel.
Industry Ministry director general for metal, machinery, textiles and various other industries, Ansari Bukhari, said that they would make their choice based on investors' ability to provide up-to-date technologies and financial support.
PT Krakatau Steel has a production capacity of 2.5 million mt a year and with a large partner company would be able to double its capacity to five million mt a year.
Moreover, Bukhari stated,"Steel makers are interested to get into Krakatau Steel as they see the huge market potential in Indonesia." Bukhari also commented that Southeast Asia's biggest economy needs as much as seven million mt of steel a year.
Krakatau Steel is Indonesia's largest steelmaker with assets worth $271 million.
Meanwhile, as previously announced Australian steel producer BlueScope Steel has confirmed its interest in the privatization of Krakatau Steel.
On the other hand, the world's largest steelmaker ArcelorMittal is also interested in Krakatau and is looking forward to meeting with Indonesian President Susilo Bambang Yudhoyono on April 10 to discuss plans to buy a stake in the steel producer.