Posco’s Indonesia steel mill sees first surplus in four years

By Kim Bo-gyung

Published : Jan. 15, 2018 - 15:43

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Posco’s steel mill in Indonesia, Krakatau Posco, posted its first surplus last year, selling an accumulated 10 million metric tons, the company said Monday.

Krakatau Posco opened in 2014 is Southeast Asia’s first-ever integrated steel mill, with production capacity of 3 million tons.

Posco and Indonesia’s state-run Krakatau Steel had invested 70 percent and 30 percent, respectively, in the steel mill.

Front view of Krakatau Posco (Posco)

Posco sold some 1.7 million tons of steel made at Krakatau Posco in 2014, and sold about 2.8 million tons each in 2016 and 2017.

Four years later, the steel mill flagged its first surplus with an operating profit of $12 million in 2017, the company said.

“Posco Construction, Posco Energy, Posco ICT and other affiliates were put into build and operate Krakatau Posco. Due to such efforts, it now stands as the best steel mill in Southeast Asia,” Posco said in a statement.

By Kim Bo-gyung (lisakim425@heraldcorp.com)

Posco’s Indonesia steel mill sees first surplus in four years

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