- POSCO ICT signs an MoU with PT.KITech and lays the foundations for a cooperative system for steelworks construction in Indonesia

POSCO ICT (Nam-suk Hur, CEO) has made its entry into the steel and iron industry in Indonesia with the signing of a cooperative relationship agreement with PT.KITech of Indonesia. Executives of the two companies, including Nam-suk Hur, CEO of POSCO ICT, and Erwanto, president of PT.KITech, attended the MoU ceremony held at POSCO ICT’s Pangyo offices on the 27th of last month.

PT.KITech is an affiliated company of Krakatau Steel, the state-run steelworks of Indonesia, and provides the IT technical support required for steelworks construction and operation. Krakatau Steel is constructing a steel mill capable of producing 6 million tons of steel per year in Indonesia through the joint investment made with POSCO in September of last year.

POSCO ICT agreed with PT.KITech to set up a cooperative system to provide technical support in the IT and engineering areas, which is needed for mill construction in Indonesia, and perform joint business activities in areas other than the iron and steel industry, such as joint business development in Indonesia, based on mutual cooperation.

“POSCO ICT has secured all the technical skills in the IT and engineering areas that are needed to build and operate the steelworks through the merger between POSData and POSCon, which took place last year. Thanks to the merger, POSCO ICT is now equipped with a total service system covering everything from the steel production process to overall business administration,” said one POSCO ICT official.

On the other hand, Indonesia is estimated to have about 2.2 billion tons of iron ore and 93.4 billion tons of coal reserves. The market is also bright because industries in India and South East Asia that need steel are expanding rapidly.