Posco’s unit in Indonesia swings into the black

Korean steelmaker Posco said Monday its steel plant in Indonesia turned a profit after four years of operation, with accumulated sales exceeding 10 million tons.

PT Krakatau Posco, an integrated steel mill jointly set up by Posco and Indonesia’s state-run steel firm Krakatau Steel, shifted to an operating profit of $12 million last year after posting losses in the previous three years, Posco said in a statement.

Posco, the world’s fifth-biggest steelmaker by output, invested a 70 percent stake in the joint venture, with the remaining 30 percent held by the Indonesian steelmaker, it said.

PT Krakatau Posco produces 3 million tons of steel per year and is the first steel mill built by Posco outside the country. It is also the first integrated steel mill in Southeast Asia.

In the January-September period, Posco reported a net profit of 2.41 trillion won ($2.28 billion), jumping from 1.03 trillion won a year earlier. Operating profits soared 46 percent on-year to 3.47 trillion won on sales of 45.06 trillion won, an 18 percent on-year increase.

Yonhap