POSCO began operations of Southeast Asia’s first integrated steel works with the lighting of the 3 million ton furnace at Krakatau POSCO for the first time at a ceremony in Cilegon, Indonesia on 23 December 2013. This marked the first time in 40 years that POSCO began producing molten iron overseas since its first effort on Yeongilman Bay in Pohang.
Approximately 500 dignitaries from Korea and Indonesia attended the ceremony, including Indonesia President Yudhoyono; Industry Minister Hidayat; Korean Vice Minister of Trade, Industry, and Energy Kim Jaehong; Korean Ambassador to Indonesia Kim Yeongseon; ASEAN Ambassador Baek Seongtaek; CEO Chung Joonyang; and Krakatau President Irvan along with other ministers and representatives from client companies, construction companies, suppliers, and external partners.
Krakatau POSCO was jointly established by POSCO and Indonesia’s state-run Krakatau Steel at a share ratio of 7:3, and boasts iron making, steelmaking and steel plate production facilities. The company is capable of producing 1.8M tons of slab and 1.2M tons of steel plate.
Krakatau POSCO plans to reach positive operating profits in 2014 – its first year of operation – through proactive market development and low-cost production technologies.
