Execution of a Definitive Agreement on a Joint Venture to Manufacture and Sell Automotive Flat Steel Products in Indonesia
Aug. 11, 2014
Nippon Steel & Sumitomo Metal Corporation
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.
KNSS’s Profile:
| - Company name: | PT KRAKATAU NIPPON STEEL SUMIKIN |
| - Establishment: | December 2012 |
| - Location: | Cilegon, Banten Province, the Republic of Indonesia |
| - Capital: | US$142 million |
| - 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$300 million |
| - Expected start of operation: | Mid 2017 |
| - Number of employees: | Approximately 280 persons. |
Outline of PTKS
| - Establishment: | 1971 |
| - President director: | Irvan Kamal Hakim |
| - Location: | (Head office) Cilegon (approximately 100 kilometers from Jakarta to the west) |
| - Total Asset: | US$ 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) |
Contact:
Public Relations Center, General Administration Division
TEL: +81-3-6867-2135, 2977
