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July 29, 2022

Posco to build second steel furnace in Indonesia

Already has a steel furnace in Cilegong on Java island

South Korean steelmaker Posco will spend US$3.5m in Indonesia over the next five years to build its second steel furnace, in conjunction with state owned PT Krakatau Steel.

The news emerged during a visit to South Korea by Indonesian president Joko Widodo who met executives at a number of top conglomerates to drum up investment.

Posco already has a steel furnace in Cilegong on Java island, as part of its majority-owned PT Krakatau-Posco joint venture with PT Krakatau Steel, which has a production capacity of three million tons of steel and steel plate processing per year.

The new furnace will double the joint ventureā€™s production capacity to six million tons per year, in anticipation of rising demand from key manufacturing sectors including automotive.

Separately, Posco said it had raised US$1bn in an overseas bond issue to strengthen its cashflow, including three year bonds worth US$700m and five year bonds worth US$300m.

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