Posnesia builds steel factory

JP/msa

JAKARTA (JP): PT Posnesia Steel Industry, a joint venture company between PT Metro Dwi Widjaja (MDW) and South Korea's POSCO, started yesterday the construction if its stainless steel plant in Cikarang, West Java.

The plant will be built on a 13.5 hectare plot, with an investment of US$122.6 billion.

The director general of domestic trade Ichaidi Elyas (second right) officially began the construction at a groundbreaking ceremony also attended by MDW's commissioner Sudwikatmono (left), POSCO's president Kim Chong-Chin (second left), and a representative of the South Korean Embassy, Hanjojng Yo (right).

The factory will have a production capacity of 75,000 metric tons per year during its first phase and 130,000 metric tons per year after completion.

The company plans to sell around 80 percent of its products on the local market and the remaining 20 percent to Southeast Asian countries and Australia.

The export level is planned to reach 50 percent by 2000. (gis)