Linde Indonesia, owned by parent company The Linde Group, has entered into a long term industrial gases supply scheme with the joint venture firm, PT. KRAKATAU POSCO.
PT. KRAKATAU POSCO, a joint venture between POSCO and Krakatau Steel, is building a three million tonnes per annum (mtpa) steelworks in the first phase in the Cilegon area, located about 100 km west of Jakarta. PT.KP's new plant will be the first integrated steelworks in Southeast Asia and is targeted to be on-stream by the end of 2013.
To support the gases requirements of PT.KP’s new steel plant, Linde will invest aproximately IDR 1tr (about EUR 88m) to install a new air separation plant at Cilegon which is capable of producing approximately 2,000 tons per day (tpd) of oxygen.
The move reflects Linde’s burgeoining interest and commitment to the region. Indeed, in an official statement, Sanjiv Lamba, member of the Executive Board of Linde AG, and Regional Business unite Head for Linde South and East Asia commented, “The Linde Group is keen to expand our business in Indonesia, one of the fastest growing economies in this region. Our decision to invest and build what will be Indonesia’s largest air separation plant, and also Linde’s largest investment in Indonesia to date, demonstrates our continued commitment to support our valuable customer PT.KP in its growth plans, and also meet future demand and market opportunities going forward,$quot;
In addition to meeting the 1,680 tpd oxygen requirement of PT.KP’s new steelworks, Linde’s new plant, which will be commissioned by October 2013, will also produce liquid products to meet the growing demand for industrial gases in West Java.
Kim Dong-Ho, President Director of PT. KRAKATAU POSCO conveyed PT KP’s enthusiasm at the contract, $quot;We are very glad to be working with Linde in our new steelworks facility in Cilegon as reliable, cost effective supply of gases plays a vital role in our operational plans.”
“I am pleased that we have reached this long term supply agreement with Linde and look forward to a very successful and mutually beneficial partnership,” concluded Kim.