【SMM Steel】Osaka Steel to Close Indonesian Joint Venture Due to Low Demand

Published: Jan 28, 2026 15:54

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【SMM Steel】Japanese steelmaker Osaka Steel has announced the closure of its Indonesian subsidiary, Krakatau Osaka Steel. This decision follows a significant reduction in infrastructure spending by the Indonesian government, leading to a sharp decline in demand. Despite returning to profitability in 2021, the joint venture has incurred net losses since 2022, including a loss of 1.3 billion yen in 2024. Production at Krakatau Osaka Steel will cease on April 30, 2026, with final shipments and sales ending on June 30. The company is currently coordinating withdrawal details with its partner, state-owned steelmaker Krakatau Steel, and the overall financial impact remains undetermined. The closure decision was made after unsuccessful attempts to secure steady profits or find a buyer for the business.

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