South Korea’s Posco, the world's second largest steel maker, has collaborated with Krakatau Steel who is a largest steel maker and state owned in Indonesia to build a new steel mill.

Posco invited operational officials from Krakatau Steel to its work site in Gwangyang to inspect and learn manufacturing process of raw material, sintering, blast furnace and coke making in order to discuss details of equipment installed in Indonesia.

This project is expected to increase annual steel production to 6 million tons and reduce the cost on steel products as Indonesia has its own reserves of iron ore and coal.