BRIEF BACKGROUND

PT Krakatau Nippon Steel Sumikin ("PT KNSS") was established in December 26, 2012. The Company's office is located in Cilegon, Banten and engaged in the business of the manufacture and sale of cold-rolled steel and hot-dip galvanized steel products for automotive use in Indonesia. PT KNSS is the Joint Venture Company between Nippon Steel & Sumitomo Metal Corporation (“NSSMC”) from Japan and PT Krakatau Steel (Persero) Tbk (“PTKS”) from Indonesia.

PT KNSS will build a Galvanizing, Annealing and Processing Line (“GAPL”) which is a manufacturing line integrating the functions of both Continuous Annealing Line and Continuous Galvanizing Line. GAPL is equivalent to the state-of-the-art equipment now in operation at NSSMC’s steelworks in Japan, and which is capable of producing high-grade, high-quality cold-rolled, hot-dip galvanized, and galvannealed steel sheets, including steel sheets for automotive outer panels and high-strength steel.

PT KNSS is going to start its operation in the middle of 2017 with productive capacity of 480,000 metric tons/year. Currently PT KNSS is in the construction stage.


Nippon Steel & Sumitomo Metal Corporation (“NSSMC”) Corporate Profile

Established in October 2012 by the merger of Nippon Steel Corporation and Sumitomo Metal Industries, Ltd., NSSMC is the world-leading integrated steel producer.

NSSMC makes a wide range of value-added steel products, in more than 15 countries as well as at 13 steelworks in Japan. It emphasizes three business fields as key strategic areas: high-grade steel products for automobiles, resources and energy, and civil engineering, construction, and railways. It conducts research and development at three major research centers, and six laboratories at steelworks, all in Japan.

In the fiscal year ended March 31, 2015, NSSMC’s crude steel production was 47.32 million tons on a consolidated basis.

http://www.nssmc.com/en/index.html


PT Krakatau Steel (Persero) Tbk. (“PTKS”) Corporate Profile

First established as the Trikora Iron Steel Project by President Soekarno, PTKS which constructed at 1970 has grown to be the largest steel producer in Indonesia.

Currently, PTKS has a steel production capacity of 3.15 million tons per year (unaudited), producing HRC, CRC and Wire Rods and through subsidiaries, the Company also manufactures steel products for specialized industries and produces steel products such as Spiral Pipes, Electrical Resistance Welding Pipes, Reinforcing Bars, and Section Steel. This rolling capacity will be increased to reach 4.65 million tons by 2017 by adding HRC capacity by 1.5 million tons. The Company markets its products not just domestically, but also internationally.

The Company’s expertise to produce such specialized steel, including steel for the defense industry, serves to further strengthen its position as one of the nation’s strategic industries.

http://www.krakatausteel.com/