Turning into Profit-making
POSCO's Indonesian steelworks 'Krakatau POSCO' exceeded 10 million tons in cumulative sales in four years since the start of its operation. As a result of the preliminary calculation of last year's performances, the company posted about 12 million dollars in operating income and produced a surplus for the first time in its corporate history.
Krakatau POSCO announced that its sales ran to 10 million tons in total on January 15 as they steadily grew to the 2.8 million ton level since 2016 after hitting 1.7 million tons in 2014.
POSCO and Indonesian state-run steelmaker Krakatau Steel invested 70% and 30% respectively in Krakatau POSCO with an annual production capacity of three million tons which started its operations in December 2013 as the first integrated steel mill in Southeast Asia.
The steelworks was the first case to build a steel mill in a foreign country with Korean technology and capital. Indonesia also succeeded in enjoying import replacement effects by way of the self-supply of high-quality steel which had been imported from abroad and enhancing the competitiveness of steel demand industries a great deal.
Bukaka Teknik, a manufacturer of steel structures, is planning to build the first full steel elevated highway in Indonesia by buying 120,000 tons of steel plates from Krakatau POSCO.
Kenertec, a wind turbine tower production subsidiary of Korindo Heavy Industries, produces wind power generators and generator towers with products from Krakatau POSCO and exports them to the US and Europe.
Krakatau POSCO will further cement its position as the top steelmaker in Southeast Asia by further strengthening its cooperative relationship with local steel makers and expanding its downstream manufacturing process. Accordingly, POSCO announced that they hope that Krakatau POSCO will spearhead the profitability enhancement of overseas investment projects.