Indonesia's largest steelmaker PT Krakatau Steel has announced that it will begin construction of the planned integrated steel plant with South Korean steel giant POSCO on October 28, 2010.
PT Krakatau Steel said that the construction of the integrated steel mill, on an area of about 350 hectares, will be implemented in two stages over three years with early stage investment of about US$3 billion.
As SteelOrbis previously reported, in early August this year POSCO and PT Krakatau Steel officially set up a joint venture for the construction and operation of a six million mt integrated mill. The two companies are participating in the JV with shares initially standing at 70 percent and 30 percent for POSCO and Krakatau Steel respectively, with the option for Krakatau Steel to increase its share to up to 45 percent after stabilization of the business.