TEMPO.CO, Jakarta - After working with Japanese company Sumitomo, domestics steel manufacturing company Krakatau Steel, will cooperate with another Japanese company, Osaka Steel Co Ltd., to build new factory and subsidiary. The new factory requires an investment of US$220 million or around Rp 2.6 trillion.
The new factory is managed by a joint venture company, Krakatau Osaka Steel (KOS). Information from the company's website stated that the agreement on the establishment of the company was signed by Krakatau Steel president director Irvan Kamal Hakim with Osaka Steel president director Junji Uchida in Jakarta on Tuesday, September 2, 2014, and enter into effect on Friday, September 5, 2014.
KOS was establish in December 2012 to produce and market steels and flat bars in Indonesia. Since then, Osaka Steel and Krakatau Steel have discussed terms and conditions that may benefit both sides.
Krakatau Steel corporate secretary Iip A. Budiman, said that the cooperation was based on the belief that steel market in Indonesia will continue to grow in the long-term. "The goal of this joint venture is to meet steel product demands, especially for construction projects," said Iip.