Posco: Integriertes Stahlwerk in Indonesien startet Bauarbeiten
Integrated steel mill in Indonesia starts construction. Annual production scale of 3 million tons, first phase targeted for completion in 2013.
POSCO has started construction of the main facilities on the integrated steel mill site in Cilegon, Indonesia.
On July 26th, POSCO started this annual 3 million tons scale mill construction by driving piles into the ground where the main facilities will be built. POSCO held a safety whishing ceremony and invited steel specialists for an information session.
This first integrated steel mill construction project is being executed by a joint venture established between POSCO and Indonesia`s state–run steelmaker Krakatau Steel with a 70:30 share ratio in September 2010. The total land space is 3,720,000? and the second phase of construction planned after the first phase completion in 2013 will expand the production scale to 6 million tons.
Indonesia has approximately 2.2 billion tons of iron ore and 93.4 billion tons of coal reserves. The steel demand in India and Southeast Asia as well as Indonesia and India is increasing, suggesting a positive market prospective. With the start of this integrated steel mill project, POSCO will also jointly develop steel materials of Indonesia, expecting to contribute to securing cost competitiveness.
POSCO plans on proactively carrying out social responsibility management and localization policies by fully utilizing local companies and manpower in the construction and operation of the integrated steel mill. The company will especially prepare contribution activities for local residents including scholarships, home improvement projects, sister relationship activities and Korean language classes.
Meanwhile, POSCO laid the ground work for 1,210,000? of the 3,720,000? total land space starting in October 2010 for the phase 1 construction while the remaining 2,510,000? land space will be ready by the end of this year. Approximately 300 vehicles had been mobilized to complete the phase 1 land ground work over a six month period.