Indonesia-based Krakatau POSCO, a joint venture between South-Korea based POSCO and Indonesian steelmaker PT Krakatau Steel, has announced that it has signed a memorandum of understanding with Indonesia-based Bank Woori Saudara to receive financial support of $200 million. The loan will include supply chain financing and working capital credit for the procurement of local raw materials.
The loan will enable the company to increase its competitiveness in terms of costs and face the challenges of steel imports from China. “Through this MoU, we have successfully secured funding to support the target of using up to 30 percent local iron ore and coking coal by 2026. This step not only increases competitiveness in terms of costs, but also contributes to Indonesia’s economic development through a stable and sustainable steel supply,” Jung Bum-Su, president director of Krakatau POSCO, said.