Automotive steel factory of KNSS comes on line

Automotive steel factory of KNSS comes on line

Steel factory of PT Krakatau Nippon Steel Sumikin in Cilegon, Banten. (ANTARA News/ Sella Panduarsa Gareta)

Cilegon, Banten (ANTARA News) - A galvanized automotive steel factory of PT Krakatau Nippon Steel Sumikin (KNSS) officially came on stream in Cilegon, Banten, on Tuesday.

The subsidiary of the state-owned steel maker, PT Krakatau Steel, said it is ready to supply automotive steel needed by the country`s automotive industry.

"We hope the factory could become a force to push implementation of development program in Indonesia," Director General of Metal, Transport Equipment and Electronic Industries Harjanto said.

The factory has a production capacity of 480,000 tons of galvanized steel per year, but currently production is still around 200,000 tons enough to meet the requirement of the country`s automotive industry.

The factory has been built with an investment of US$300 million opening 280 jobs Harjanto said.

"Therefore, we expect PT KNSS to offer the jobs for local people and use local content," he said.

Harjanto said a number of car makers in Indonesia has used domestic steel, although many of the basic materials for the steel are still imported.

Chief Executive of Krakatau Steel Mas Wigrantoro said KNNS is ready to supply and meet domestic requirement for automotive steel.

"We are very hopeful, automotive industry especially Japanese car makers would use KNNS products that the purpose of the investment would become a reality," Mas Wig said.

Reporting by Sella Panduarsa Gareta
Editing by A Saragih

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