Indonesia-based steel producer PT Krakatau Steel has allocated over 500 hectares of land in the Krakatau industrial area to support a major investment planned by Chinese steelmaker Delong Steel Group and its subsidiary PT Dexin Steel Indonesia, according to local media reports. This follows an agreement signed between companies on raw material supply and other collaborations in May this year.
The land will accommodate Delong Steel’s new plant with a capacity of 3 million mt per year. The plant will focus on producing high value-added steel products, reducing Indonesia’s dependence on imports and strengthening the country’s position in global markets. The plant also has the potential to produce green steel.
Currently, negotiations between Krakatau Steel and Delong Steel are ongoing. The investment is expected to create thousands of local jobs, boost Indonesia’s value-added industrial output, and positively impact the national economy and trade balance.
