State-owned steel manufacturer PT Krakatau Steel (KS) has again invested trillions of rupiah after establishing a joint venture with a Korean steel plant, Posco.
"Besides developing and revitalizing the Krakatau-Posco enterprise, we are also building a 1.2 million TPY blast furnace with an investment of Rp5.92 trillion," President Director of PT KS Fazwar Bujang said Tuesday.
The undertaking, Fazwar said, was for production revitalization and facilitation as well as business expansion this year. "We are expanding the business to see that PT KS remains competitive in the current increasing market conditions," he added.
He added that some PT KS projects and its subsidiaries being developed and revitalized, namely the PT KS-POSCO joint venture which is currently preparing 388 hectares of land for the steel plant worth Rp600 billion.
"In addition, we are also revitalizing the DR Plant to modify gas reformers worth Rp650 billion," he said.
Other projects include SSP-1 to boost productivity and production quality at a cost of Rp850 billion, HSM to boost productivity and production quality at a cost of Rp750 billion.
PT KS, Fazwar said further, established cooperation with state mining company PT Aneka Tambang to process local raw materials into sponge iron as alternative raw material for PT KS.
"The project is estimated at Rp1.38 trillion. And other projects included HSM 3,5 million TPY to boost production of HRC into 3.5 million of TPY at a cost of Rp1.30 trillion," he added