PT Krakatau Steel (Persero) Tbk (PTKS) and Osaka Steel Co., Ltd. signed an agreement to form a joint venture (JV), PT Krakatau Osaka Steel, to produce and market steel profiles, steel reinforcement, and flat bars in Indonesia. The JV, with a paid up capital of $70 million, factory will be located in the Krakatau Industrial Zone in Cilegon, Banten, Indonesia. Osaka Steel will hold an 80% stake, while Krakatau Steel will hold the remaining 20% stake in the JV.

With an investment of $200 million, the JV is expected to begin operations in 2016, with a sales target of 0.5 million tons per year and to employ around 170 employees.