Indonesia President Susilo Bambang Yudhoyono on December 23 inaugurated PT Krakatau Posco steel complex, the country’s biggest investment project worth 6 billion USD.

The plant is a joint venture between the Posco Group from the Republic of Korea and PT Krakatau Steel which respectively own 55 percent and 45 percent stake.

PT Krakatau Steel President Director Irvan K. Hakim said the first phase will enable a production capacity of 3 million tonnes of steel per year, which will increase to 6 million tonnes per year once the second phase is completed.

The operation of the new complex will meet cater the increasing demand for special steel materials in the country, which is expected to rise 8-9 percent a year
he added.

Covering a total area of 388 hectares, the complex consists of six main factories.

The project’s first phase is expected to create an output value of 4.7 billion USD per annum and absorb 63,000 workers.

On national scale, the project is designed to have output worth 7 billion USD per year with a manpower absorption capacity of 149,000 workers.-VNA