NSSMC’s joint venture for Manufacture and Sale of Automotive Flat Steel Products in Indonesia, KNSS, Holds a Cornerstone Laying Ceremony
Aug. 26, 2015
Nippon Steel & Sumitomo Metal Corporation
NSSMC’s joint venture for Manufacture and Sale of Automotive Flat Steel Products
in Indonesia, KNSS, Holds a Cornerstone Laying Ceremony
PT KRAKATAU NIPPON STEEL SUMIKIN (“KNSS”) held a cornerstone laying ceremony at the site for a new plant in the Krakatau Industrial Estate Cilegon, Banten Province, the Republic of Indonesia, on August 25, 2015. KNSS is a joint venture of Nippon Steel & Sumitomo Metal Corporation (“NSSMC”; Representative Director and President: Kosei Shindo) and PT Krakatau Steel (Persero) Tbk (“PTKS”) to manufacture and sell automotive flat steel products. Around 180 people attended the ceremony including the Mayor of Cilegon City, the officials from the Indonesian Government, the officials from the Japanese Embassy in Indonesia, Krakatau’s President Cmmissioner Ahmad Sofjan Ruky, NSSMC’s Representative Director and Executive Vice President Katsuhiko Ota, and others.
As the Indonesian automotive market is expected further growth over the medium to long term, automakers’ needs for anti-corrosion steel and high-strength steel are anticipated to grow. KNSS will build a Galvanizing, Annealing and Processing Line (“GAPL”), integrating the functions of a Continuous Annealing Line and a Continuous Galvanizing Line, to manufacture high-grade, high-quality cold-rolled, hot-dip galvanized, and galvannealed steel sheets to Indonesian automakers.
NSSMC and PTKS intend to contribute to the further development of the Indonesian automotive industry through KNSS.
From the fourth person from the front row left; the Mayor of Cilegon City,
Katsuhiko Ota, Naomasa Arita, Mr. Ruky, Mr. Aoki(Minister of Japanese Embassy)
Outline of KNSS, or PT KRAKATAU NIPPON STEEL SUMIKIN
|-Plant location|| Krakatau Industrial Estate Cilegon, Bantaeng Province, |
the Republic of Indonesia
|-Main business|| Manufacture and sale of cold-rolled steel and hot-dip |
galvanized (alloy) steel products for automotive use
|-Shareholding Ratio||NSSMC: 80%, PTKS: 20%|
|-Productive capacity||480,000 metric tons/year|
|-Investment amount||Approximately US$300 million|
| -Expected start|
|Mid 2017 (plan)|
| -Employees ||Approximately 280 (plan)|
Outline of PTKS, or PT KRAKATAU STEEL (PERSERO) Tbk
| -Established ||1971|
| -President director ||Sukandar|
|-Location|| (Head office) Cilegon (approximately 100 kilometers|
from Jakarta to the west)
|-Total Assets|| US$ 2.6 billion (2014 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 2.3 million metric tons per year (2014CY)|