Posco ties up with Korindo to make tinplate

Posco ties up with Korindo to make tinplate

JAKARTA (JP): Korea's Pohang Iron & Steel Co. Ltd. (Posco) and
domestic firm Korindo group have signed an agreement to form a
joint venture, PT Posko Tin Indonesia, to build a tinplate mill
in West Java, Korindo announced yesterday.

The joint venture, 70 percent owned by Posco and 30 percent by
Korindo, will spend about US$55 million setting up the mill.

The mill is scheduled to start commercial production in 1999
and produce up to 100,000 tons of tinplate a year.

"Indonesia's reliance on imported tinplate will be
significantly relieved after the completion of this project,"
said Chun Ho Lee, Posco's executive vice president.

PT Pelat Timah Nusantara is now the country's only tinplate
manufacturer, producing about 130,000 tons a year. Domestic
demand for tinplate is estimated to be 230,000 tons a year.

Korindo forecasts that local demand for tinplate will exceed
300,000 tons a year after 2000.

The joint venture is part of Korindo's plan to diversify from
manufacturing logging and plywood, newsprint paper and pulp,
sport shoes, containers, fine chemicals and finance.

The company said the joint venture was initiated by the bright
prospects of the domestic canning industry.

"Investment to canning industry has greatly increased," Dong
Hwan Kim, Korindo's vice chairman, said.

The company set up another joint venture recently with Posco,
PT Nusamba and PT Krakatau Steel to build a second generation
steel mill.

The mill, scheduled to start in 1999, is expected to cost $700
million and be able to produce 2,000,000 tons of steel a year.

Posco has invested in several iron and steel projects in South
East Asia. (02)