JAPAN: Nippon Steel and Krakatau further define JV agreement
Nippon Steel & Sumitomo Metal Corporation and PT Krakatau Steel, have further defined an agreement concerning their joint venture, PT Krakatau Nippon Steel Sumikin (KNSS).
KNSS was established in Indonesia in December, 2012, for the manufacture and sale of automotive flat steel products, with both both parties discussing the detailed terms and conditions of their joint venture for two years.
KNSS will build a galvanising, annealing and processing line (GAPL), which is a manufacturing process integrating the functions of both a continuous annealing line and continuous galvanising line.
GAPL is equivalent to the equipment now in operation at NSSMC's plant and which is capable of producing high-grade, cold-rolled, hot-dip galvanised and galvannealed steel sheets, including those for automotive outer panels and high-strength steel.
Nippon Steel & Sumitomo Metal Corporation (“NSSMC”) (Representative Director and President: Kosei Shindo) and PT Krakatau Steel (Persero) Tbk (“PTKS”) (President Director: Irvan Kamal Hakim) executed on August 11, 2014 a definitive agreement concerning their joint venture, PT KRAKATAU NIPPON STEEL SUMIKIN (“KNSS”). KNSS was established in the Republic of Indonesia in December 2012 for the manufacture and sale of automotive flat steel products, and NSSMC and PTKS had been discussing the detailed terms and conditions of their joint venture since then.
The Indonesian automotive market is expected to grow further in the future and it is expected that automakers’ needs for anti-corrosion steel and high-strength steel will also grow. KNSS will build a Galvanizing, Annealing and Processing Line (“GAPL”) which is a manufacturing line integrating the functions of both Continuous Annealing Line and Continuous Galvanizing Line. GAPL is equivalent to the state-of-the-art equipment now in operation at NSSMC’s steelworks, and which is capable of producing high-grade, high-quality cold-rolled, hot-dip galvanized, and galvannealed steel sheets, including steel sheets for automotive outer panels and high-strength steel. With this new line, KNSS will adapt their business to capture the precise needs of automakers.
NSSMC and PTKS intend to contribute to the further development of the Indonesian automotive industry through KNSS.
|- Company name:||PT KRAKATAU NIPPON STEEL SUMIKIN|
|- Establishment:||December 2012|
|- Location:||Cilegon, Banten Province, the Republic of Indonesia|
| - Capital:
|- Main business:|| Manufacture and sale of cold-rolled steel and hot-dip
galvanized steel products for automotive use
|- Shareholding Ratio:||NSSMC: 80%, PTKS: 20%|
|- Productive capacity:||480,000 metric tons/year|
|- Investment amount:||Approximately US$300 million|
| - Expected start of operation:
|- Number of employees:||Approximately 280 persons.|
Outline of PTKS
| - Establishment:
|- President director:||Irvan Kamal Hakim|
| - Location:
|| (Head office) Cilegon
(approximately 100 kilometers from Jakarta to the west)
|- Total Asset:|| US$ 2.4 billion (2013 CY)
* 80% of the shares are owned by the Indonesian government
|- Main business:|| Manufacture and sale of flat steel products, sections,
bars & wire rods, and steel pipes.
| - Steel product sales:
||Approximately 2.4 million metric tons per year (2013CY)|
Original source: http://www.nssmc.com/en/news/20140811_100.html