Indonesian steelmaker PT Krakatau Steel has signed a memorandum of understanding with Zhongnan Iron and Steel Company, a subsidiary of China-based Baowu Group, to strengthen cooperation on steelmaking, according to media reports.
The parties will build a new steel plant with an annual production capacity of two million mt of long steel in Indonesia, with a further increase to an annual four million mt. In addition, a wire rod mill will be upgraded, and a new basic oxygen furnace and billet casting facility will be built at Krakatau Steel’s plant.
The project is expected to cost $1.2 billion.