Japanese steelmaker Nippon Steel and Sumitomo Metal Corporation (NSSMC) has announced that the Jakarta Representative Office of Nippon Steel & Sumitomo Metal Southeast Asia Pte. Ltd. will be replaced by a newly established wholly-owned subsidiary of NSSMC, which will be named PT. Nippon Steel and Sumitomo Metal Indonesia. The company said it aims to strengthen its function in collecting information, supporting steel sales and technology services, and also supporting the business activities of the group companies in Indonesia such as PT Krakatau Nippon Steel Sumikin.
NSSMC believes that steel demand in Indonesia is expected to keep growing in industries such as automobiles, motorcycles and also in the infrastructure and energy sectors. The country's economy has also been running stable at a five to six percent annual GDP growth rate in recent years.
The Japanese steelmaker also stated that it is opening a representative office in Ho Chi Minh City, Vietnam as of January 1, 2015. Steel demand in Vietnam is expected to grow continuously in the medium to long-term in industries such as infrastructure and energy sectors for investment in social infrastructure with its long-term forecast of growth in economy.