Jakarta - PT Krakatau Steel and Posco plan to invest long-term, with a total value of around US$3.5 billion.

Based on Krakatau Steel's publication material on Wednesday (12/28), the investment plan includes the construction of cold rolling mill #2 with a capacity of 1 million tons per year and an iron and steel-making facility with a capacity of 3 million tons per year.

In the HMS #2 project, Krakatau Steel and Posco each own a 50% stake in PT Kratau Posco (KP), which acts as the project's operator. Previously, Krakatau Steel's share of ownership in PT KP was around 30%.

The plan to increase share ownership in PT KP is intended so that the company can earn consolidated income from improving PT KP's performance.

Then, increase the capacity of hot strip mill #2 (HSM #2) to 3 million tons per year, and construct a cold galvanizing line with a capacity of 0.5 million tons per year.

This investment plan aims to increase pr