Japanese steelmaker Nippon Steel & Sumitomo Metal Corporation has announced that PT Krakatau Nippon Steel Sumikin (KNSS), its joint venture with PT Krakatau Steel (Persero) Tbk (PTKS), held a groundbreaking ceremony for a new plant in Krakatau Industrial Estate Cilegon, Banten Province, Republic of Indonesia, on Tuesday, August 25. KNSS will manufacture and sell automotive flat steel products.
The new plant scheduled to start operations in mid-2017 will have an annual output capacity of 480,000 mt. The investment for the plant is approximately US$300 million.
NSSMC said that, as the Indonesian automotive market expects further growth over the medium to long term, automakers’ needs for anti-corrosion steel and high-strength steel are anticipated to grow. KNSS will build a galvanizing, annealing and processing line, integrating the functions of a continuous annealing line and a continuous galvanizing line, to manufacture high-grade, high-quality cold rolled, hot dip galvanized and galvannealed steel sheets for Indonesian automakers.