South Korean steelmaker POSCO is set to significantly expand its steelmaking capacity in Indonesia through the second phase of its joint venture Krakatau POSCO, with a planned investment of $4 billion aimed at meeting growing steel demand in Southeast Asia and strengthening the company's global production network, according to media reports.
Second-phase expansion targets integrated steel production
The expansion project will be carried out at Krakatau POSCO's integrated steelworks in Cilegon, Indonesia, a joint venture between POSCO and Indonesian state-owned steelmaker Krakatau Steel.
The second phase is expected to add new upstream and downstream facilities, increasing the plant's production capacity and enabling the company to produce higher value-added steel products for domestic and regional markets.
Investment supports Southeast Asian growth strategy
The investment forms part of POSCO's strategy to strengthen its manufacturing base in Southeast Asia, where steel demand continues to grow alongside infrastructure, construction and manufacturing development.
Indonesia is one of the region's largest steel-consuming markets, and POSCO expects the expansion to improve its ability to supply customers locally while reducing reliance on exports from South Korea.
