Krakatau Posco expected to become first ESG steel mill in Southeast Asia
26 Sep 2023 17:13 reported by ELLEN HUNG
Krakatau Posco located in Cilegon near Jakarta, is a JV of POSCO and Krakatau Steel, an Indonesia government-owned steel mill, and it is an integrated steel mill with a capacity of 3 million tons of steel annually.
This JV steel mill came with a sales profit of US$502 million and a revenue of US$2.35 billion in 2021, and a sales profit of US$221 million and a revenue of US$2.33 billion. It was estimated to have a capacity of up to 10 million tons of steel production in 2030.
Previously, POSCO, Krakatau Steel, and the Indonesian government signed a MoU to invest US$3.5 billion to expand the capacity by 2022 July, which will boost the capacity to 6 million tons by 2026.
This mill is upgrading and might become the first ESG steel mill in Southeast Asia as they are on negotiating with the oil company ExxonMobil's subsidiary and Indonesian government to execute a CCUS project to capture and seal the carbon emission. The carbon emissions during steel melting will be collected and stored underground away from the steel plant by 50-200 kilometers.
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