The project that possibly would be materialized together with PT Krakatau Steel (KS), Indonesia's biggest steel company, will produce hot rolled plate.
The Industry Ministry's director for metal industry I Putu Suryawirawan said that the new factory was projected to have installed capacity of 2.5 million tons a year with electricity needs up to 500 megawatt (MW).
According to Putu, the total investment for the project is predicted to reach 2-2.5 billion U.S. dollars.
"The current global economic crisis is not obstacle for Posco to invest in Indonesia," said Putu.
The company's president director Fazwar Bujang added that the investment also would be used to complete the factory's infrastructure, like new port that is capable to accommodate ship containers loaded with 200,000 tons of material.
He said that if things go smoothly, a memorandum of understanding between the two companies would be signed before this year's end at the fastest.
In the mega project, Posco would control a majority shares of 60 percent and the rest would be held by KS.
(XFN)
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