TEMPO.CO, Jakarta - National steel company Krakatau Steel (IDX: KRAS) is forming a a joint venture with Japanese company Nippon Steel & Sumitomo Metal Corporation (NSSMC). The new company will be named Krakatau Nippon Steel Sumikin, or KNSS for short, and will focus on producing and selling steel products for the automotive industry.
Krakatau Steel president director Irvan K. Hakim said both companies decided on a joint venture after considering the continuing growth of Indonesia's automotive industry, which is expected to provide room for demand.
"We believe that the demand for steel plate products will continue to rise," irvan said in Jakarta, Monday, August 11.
According to Irvan, the formation of KNSS began in December 2012. The final agreement was be made after both parties have a more detailed discussion about relevant terms and conditions.
"NSSMC will have 80 percent stake in KNSS, while Krakatau Steel will own 20 percent," he said.