According to report, Nippon Steel Trading Co., the steel trading unit of Nippon Steel, has set up a joint venture with Indonesian local companies to produce steel for the automotive industry.

The joint venture, PT JndoJapan Steel Center, the stakes are held by Indonesian companies by the following, the automotive parts maker PT Adyawinsa Dinamika (30%), the steelmaker and distributor PR Dwijaya Sentosa Abadi (30%) and state-owned steel company PT Krakatau Steel (10%). Nippon Steel will control 30% of stakes.

The new JV will bring to its current 15 steel processing centers, 7 were located outside of Japan, including China, Thailand and Vietnam.

The annual capacity of the new JV will be 120,000 tons of steel sheets and will start to be constructed in November this year and expected to commission in January 2013.