JAKARTA: State-Owned Enterprises Ministry will discuss the future of US$5-billion cooperation between PT Krakatau Steel Tbk and South Korea-based Honam Petro Chemical Corporation today.
There are many options offered for the cooperation, including leasing land of Krakatau Steel to an integrated chemical factory of Honam Petrochemical, said State-Owned Enterprises Minister Dahlan Iskan.
“We are still finding out solution to realize the investment project. Tomorrow (today), there will be a meeting among Honam, Krakatau Steel, and State-Owned Enterprises Ministry. We will offer long-term lease. If the option isn’t approved, we should look for other options,” he said yesterday.
The state-owned steel producer has engaged South Korea-based Posco to create a joint venture named KS-Posco with share composition by 30% for Krakatau Steel and 70% for Posco.
KS-Posco is constructing a blast furnace having a capacity of 3 million tons per year that will be completed in 2013. (t01/aph)