Japanese steelmaker Nippon Steel & Sumitomo Metal Corporation (NSSMC) announced that it has came to an agreement with Indonesia-based PT Krakatau Steel (Persero) Tbk (PTKS) to conduct a detailed study to jointly launch a joint venture for the manufacture and sales of automotive flat steel products in Indonesia.
The parties will discuss the detailed terms and conditions of the joint venture with the aim of entering into a definitive agreement in the first half of 2013. Nippon Steel will have 51 percent stake in the joint venture, while PT Krakatau will hold the remaining 49 percent.
The steelmakers aim to meet the demand for high-grade automotive flat steel products mainly from Japanese automakers that have developed their business in Indonesia, as well as to contribute to the further development of the Indonesian automotive industry.