Krakatau Steel, Posco plan $3.5b investment

JAKARTA, July 28 (Reuters): Indonesia's Krakatau Steel and South Korea's Posco Holdings have agreed to invest $3.5 billion to expand their production capacity in the Southeast Asian country, the companies said on Thursday.

Under the deal, the companies agreed to increase production capacity of Krakatau Posco to 10 million tonnes per year for upstream and downstream products, Krakatau said in a statement.

The expansion will start next year and include the production of automotive steel for electric vehicles (EVs), the Indonesian Investment Ministry said in a separate statement about the deal.