The Korean steel giant POSCO announced that it began operation of its first blast furnace in Indonesia in order to fulfill the surging steel demand in the Southeast Asian country.
The blast furnace is a joint venture project with Krakatau Steel and expected to produce 1.8 million tons of slabs and 1.2 million tons of steel plates yearly.
Meanwhile, the plant is expected to make a profit next year and has decided to sell 1.5 million tons of slabs and 600,000 tons of steel plates in Indonesia.
However, it also seeks to sell some of the products to Korean buyers, before finding possible buyers in other Southeast Asian countries as well as in the Middle East.