South Korean steel goliath POSCO has announced that on October 28 it held a groundbreaking ceremony for an integrated steel mill in Indonesia, to be constructed with its joint venture (JV) partner, Indonesia's largest steelmaker PT Krakatau Steel.
As SteelOrbis previously reported, the new integrated mill, the first one in Southeast Asia, will be built on 400 hectares in two stages with an overall capacity of six million metric tons annually. Construction of the first stage facility with a capacity of three million metric tons is planned to be completed by 2013. The project is worth about US$3 billion.
In early August this year POSCO and PT Krakatau Steel officially set up a JV for the construction and operation of the mill, with shares standing at 70 percent and 30 percent respectively.