Krakatau Steel prepares 500 ha of land for Delong Steel investment

PT Krakatau Steel has prepared more than 500 hectares (ha) of land in the Krakatau Industrial Estate Cilegon (KIEC), Cilegon City, Banten Province managed by its subsidiary PT KIEC to support the investment plan of Shanghai Delong Steel Group, the 11^th-ranked steel producer in the world and 7^th in China, through its subsidiary PT Dexin Steel Indonesia.

"This phase began in May 2025 when the Krakatau Steel team visited China and signed a memorandum of understanding (MoU) for the procurement of raw materials with Delong Steel Group," stated Krakatau Steel President Director Muhamad Akbar Djohan on June 10, 2025.

The signing of the MoU was witnessed directly by Delong Steel Chairman Ding Liguo. As a follow-up, the Delong and Dexin delegations visited Cilegon City on June 3, 2025, to directly review the location for the prospective factory, as well as supporting facilities owned by Krakatau Steel Group such as the port and existing steel mill.

The discussion for the project continued in a business meeting on June 5, 2025 in Jakarta. The main focus of this collaboration is the construction of an integrated steel mill with a capacity of 3 million tons per year.

"We are very open to this global strategic collaboration. The provision of land through PT Krakatau Sarana Infrastruktur (KSI) is a form of our real support. This collaboration also opens up opportunities for technology transfer and the development of environmentally friendly steel or green steel," said Akbar Djohan.

The Delong Steel management considers Cilegon City to be a strategic location with established industrial infrastructure. They are currently conducting a comprehensive study for the realization of this investment. The new factory is targeted to produce high-quality steel, while also having the potential to develop green steel in line with Krakatau Steel's vision to make Cilegon City the center of the environmentally friendly steel industry in Southeast Asia.

This investment is estimated to employ thousands of local workers and provide a multiplier effect for the national economy, including strengthening the industrial supply chain and supporting the Indonesian government's National Strategic Projects (PSNs).

"We are not only building a factory, but building a stronger and more competitive national steel industry ecosystem," concluded Akbar.