In the basement floor of Krakatau Steel Building Jakarta, PT Krakatau Steel Tbk through its subsidiary PT Krakatau Wajatama signed a JV Agreement with Natsteel Asia Pte. Limited, and PT Marubeni-Itochu Steel Indonesia to set up a JV company, namely, PT Krakatau Natsteel Construction Solution.
Establishment of this JV was a part of the development plan of PT Krakatau Wajatama, to meet the needs of national downstream steel products and services. Mainly, related to infrastructure development in Indonesia that was growing rapidly, one of which was Mass Rapid Transport. The JV would be the pioneer that provided a total solution to the demand of downstream steel products and services in Indonesia with a production capacity of 70,000 tonne per year.
The first investment phase of the authorized capital of the JV amounted to USD 2.2 million, the issued and fully paid of the company amounted to USD 550 thousand.
For the initial stage, the shareholding of the parties involved was the Krakatau Wajatama by 45%, Natsteel Asia (S) Pte. Ltd.. By 45% and PT. Marubeni Itochu Steel Indonesia by 10%.
Mr Irvan Kamal Hakim President Director of PT Krakatau Steel said that “The joint venture is expected to be the pioneer of downstream steel products and services in Indonesia, a pioneer of the product diversification, and also an additional access to state of the art technology and know-how.”