TOKYO Aug 11 Japan's Nippon Steel & Sumitomo
Metal Corp said on Monday it and Indonesia's largest
steelmaker PT Krakatau Steel have signed a definitive
agreement to produce automotive flat steel in Indonesia through
a joint venture.
The two companies will invest about $300 million to begin
commercial operations of a state-of-the-art plant capable of
producing 480,000 tonnes of high-end steel a year from around
the middle of 2017, the Japanese firm said in a statement.
Nippon Steel - the world's second biggest steelmaker by
output - and Krakatau have been in talks since December 2012
about building a steelmaking plant in Indonesia.
Japanese steelmakers, fresh from a bumper year of profits
amid an upswing in their home market after massive government
stimulus, are looking to step up expansion overseas despite the
prolonged supply overhang that now grips Asia.
The fresh drive overseas means top Japanese steelmakers will
be producing more than half of the total output of their
mainstay automotive steel sheets in factories outside Japan by
2016, as their home market stagnates with a falling population.
(Reporting by Osamu Tsukimori; Editing by Tom Hogue)