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Indonesian state-owned steelmaker Krakatau Steel has signed a memorandum of understanding with Baowu Group subsidiary Zhongnan Steel to restart Krakatau Steel's ironmaking and steelmaking facilities and start a long-term Material production.
According to local media reports, under the agreement, investment in the first phase is expected to be US$1.2 billion. Purwono Widodo, president of Kakra Katau Steel Company, said: “This cooperation aims to develop long construction steel products, from billet production to preliminary development of wire rod mills”.
The plan is divided into several phases, including upgrading the 600,000 tons per year wire rod rolling mill. At the same time, there are plans to build a new converter and a billet foundry with an annual capacity of 1.5 million tons. Subsequently, blast furnace operations will resume.
According to Metal Expert, in December 2018, Krakatau Steel Company launched a new blast furnace with an annual output of 1.2 million tons in Cilegon. However, technical problems prevented further operation of the device.
