Krakatau Steel to sign jv deal with S. Korea`s Pohang

Jakarta (ANTARA News/Asia Pulse) - Indonesian state-owed company PT Krakatau Steel will sign a joint venture agreement with South Korea's steel giant Pohang Iron and Steel to build a US$5 billion steel plant in the country.

Krakatau President Fazwar Bujang said the country's largest steel maker would take up to 45 per cent stake in the venture.

The US$5 billion plant will be built in its vast Cilegon Industrial Complex, Banten, Bujang said, adding it should boost Krakatau's production capacity to 3.5 million tons a year from 2.5 million tons at present.

The deal is expected to be finalized by the end of the month, he was quoted as saying by the newspaper Jakarta Globe.