16:04, December 02, 2009  Unlisted Indonesia's steel producer PT Krakatau Steel and South Korea's Posco, the world's second largest steel producer, have reached an agreement for a joint venture to establish a steel plate plant in 2010 in Indonesia's Banten, local media reported Wednesday.

The plant, at the cost of 5 billion U.S. dollars, was expected to be operational in 2013 with initial production capacity of 2.5 million tons annually, President Director of Krakatau Steel FazwarBujang was quoted by Bisnis Indonesia as saying.

"Then the capacity would be increased by 2.5 million tons, so that the total capacity would be 5 million tons per year," he said.

The director said the collaboration with Posco also aimed at boosting the country's technology in steel production.

Indonesia's steel consumption is predicted to rise in 2010 by 8percent to 10 percent to 6.43 million tons, the director has said.

Source: Xinhua http://english.people.com.cn/90001/90778/90858/90863/6830271.html