Krakatau POSCO Solution Introduction and

Experience in Producing High Performance

Structural Steel Plates

Speakers:

Muhammad Firdaus &

Tagentar Panricas Pancoro
FOUNDING COMPANIES

PT. KP, a joint venture between POSCO and Krakatau Steel,

is the largest integrated plate mill in Indonesia
30% KS
Share- Production Capacity
holder 3 Million Ton/Year
70%
POSCO

2,250 Employees Located in Cilegon, Banten

Total Area 388 Ha
KEY MILESTONES

2009 2012 2014

December 2009 February 2012 January 2014
MoA signing between First delivery of steel structure First Delivery Commercial Plate
Krakatau Steel & POSCO
July 2012
Blast Furnace Main Column Erection

2010 2013 2018

August 2010 December 2013 January 2018
JVA signing between Completion Ceremony Achieve 10 Million Tons
Krakatau Steel & POSCO First Tapping Blast Furnace Shipment
October 2010
Ground breaking Krakatau Posco
MAIN FACILITIES
KRAKATAU POSCO PRODUCTS
Steel Slab Plate Certificates

Capability
Thickness : 230 mm
Width : 1,100 mm ~ 2,300 mm
Length : 6,000 mm ~ 12,000 mm
Max Weight : 35 Ton
Steel Plate

Capability
Thickness : 6 ~ 75 mm
Width : 1,500 ~ 4,300 mm
Length : 3,000 ~ 25,000 mm
Max Weight : 10.4 ~ 16 Ton (/Pieces)
INDONESIA STEEL MARKET
 Steel demand has been increasing over the past 12 years and continously increasing
 Government support through infrastructure budget give the positive atmosphere in steel industry

Indonesia Steel Consumption Infrastructure Budget

(trillion rupiah) 419
Compound Annual Growth Rate (CAGR, ‘06~’18) : 7,7% 410

CAGR(F) : 5.5% 269

(Mil ton) (’18~’24)
20.8 155
CAGR : 7.7% 18.4
(’06~’18)
16.4
15.1 7.4 8.4
12.7 12.9 6.6 2014 2016 2018 2020
12.3 6.1 Source : Website Kementerian Keuangan
8.8 9.1 4.3 4.5 4.5
Target Market
6.2 3.3 3.5
3.1
5.5 5.6 Road Dam
3.1 8.4 8.4 7.8 9 9.8 11 12.4

2006 2008 2010 2012 2014 2016 2018 2020 (F) 2022 (F) 2024 (F) Airport Irigation
Flat Long Total
Railways Bridge
Source : SEAISI statistical yearbook(‘18.8), POSRI, Final product including pipes & tubes
INDONESIA STEEL MARKET

HRC & Plate Consumption

PT. KP ACHIEVEMENTS

Running full operation and reached 14Mil tons of sales(slab+plate) over the past 5 years

Increasing sharply plate sales to domestic * (’14~’17) ±30kMT → (’18~ ) 60kMT/month

PT. KP ACHIEVEMENTS

Steady & outstanding growth driven by domestic plate sales

Domestic sales growth sharply due to high demand from government project since ‘15~’19

Plate Sales Volume Domestic Sales by Segment

(thousand tons)
1,350 Enlarged sales proportion of end-user & high grade steel
1,150
840
56% 32% 38% 41%
Stokist Project Stokist Project
Total 62%
780 44%
5% End-User
End-User
680 Heavy Equip
Domestic
340
7% 14%
2016 2018 2020 (F) 2015 Shipbuilding 2019 Heavy Equip
CUSTOMER SEGMENTATION

STOCKIST

HEAVY CONSTRUC-
EQUIPMENT TION

WIND
BPV & OGP
TOWER

SHIP-
BUILDING
CONSTRUCTION
MAJOR PROJECT EXPERIENCE

JAPEK II Central Java CFPP PCP SCBD Tanjung Jati CFPP

Elevated Toll Road (2 x 1000MW) High-Rise Building (2 x 1000MW)

EPC Waskita, Acset MHPS Takenaka Corp. MHPS

Murinda, CF, PROFAB,
Fabricator Bukaka Murinda, CHC CHC
Gunanusa

Spec SM520B, SM570 SM490A, A36 A572-50 A572-50, A36

OIL & GAS PIPELINE
SHIPBUILDING
MAJOR PROJECT EXPERIENCE

PERTAMINA Oil Tanker MV Iriana Tol Laut

(17,500 LTDW) (9,300 DWT) Project

Owner PT. PERTAMINA Sumber Marine Shipyard Ministry of Transportation

Spec RINA-A ,LR-A, NK-A, BKI-A & AH36 BKI-A BKI-A

WIND TOWER
WORLD CLASS STEEL PLATE approved by various world projects

Vicente Guerrero – Wind Tower

S355J0NR

PLTS Sidrap - Wind Tower

S355J0NR

Wind Farm Project

S355J2NR

Dundonell Project - Wind Tower

S355J0NR
HEAVY EQUIPMENT
Since 2017, PT. KP succeeded to obtain all HE END-USERS
major maker’s quality approvals in Indonesia
Plate
Supply
(%)

2013 2019

Product Application :
• Excavator
• Dump Truck
• Road Machineries

APPROVAL MILESTONES

Dec 2013 May 2014 Mar 2015 Jul 2015 Dec 2015 present
Started production Caterpillar Sumitomo & Komatsu Sakai Hitachi Continuously developing
higher specs
KRAKATAU POSCO STRATEGIC DIRECTION
Shifting paradigm fromSteel Supplier toSolution Provider
 Enhancing customer value by top-quality products with customized service
 Promptly reflects customer needs to support customers in intense competition

2019 ★

2017 Qualitative Maturity ★

• Providing Premium value to
increase customer satisfaction
Quantitative Expansion • Customized service to secure
competitive advantage
• Substitute imports material
2014 using new TMCP facility

Solid Foundation
TMCP Facility
(Thermo Mechanical Control Process)
KRAKATAU POSCO STRATEGIC DIRECTION

Strategic
Direction
KRAKATAU POSCO STRATEGIC DIRECTION

Grow Together With Customer

1 2
Promotion
Cooperate with domestic steel
association :
Strategic Pricing
Support costumer with longterm
price agreement in order to win
mega project

3 4
Cost Competitive
Secure cost competitive against
concrete design to win projects
applying steel structure
Expand Networking
Create networking with PJT
Owner & EPC Company
KRAKATAU POSCO STRATEGIC DIRECTION

Superior Product through TMCP and AcC

42 %
38%
34%

2013 2017 2018

Source: The 4th Government TFT Meeting for

National Steel Industry Development
KRAKATAU POSCO STRATEGIC DIRECTION
Operate Hot Strip Mill#2
Construction Progress

 Steel Product : HRC

 Prod. Capacity : 1.5 Mill Ton / year
 Commercial Start : June 2020

Hot Rolled Coil Availablity Size (mm)

Max.
t w Inner Ø
Weight
HSM#2 1.4 - 16 600 - 1,650 30 762
Krakatau Posco can be break the
limit throgh HSM#2 to provide coil Steel Application Standard Typical Grade
S235J0
and thinner product for sufficient
S275J0
customer demand General Structure EN 10 025-2 S355J0
S355J2G3
S450J0
P195
P235
EN 10 217
Pipe & Tube P275
P355
API 5L X65 PSL 1
 the traffic jam at Jakarta -
Day by day,
Cikampek is getting WORSE

Solution given by the Indonesia’s government is

Why using STEEL bridge ?

Higher strength, easy to transport, less piers usages

and had fast construction period

Long distance between the piers,

so it’s need a longer bridge

To get longer bridge, we need

High strength steel !
Why using STEEL bridge ?

Strength
• Construction rate is fast
• Fabrication time is shorter
• Faster erection
 Cost are more effective while construction
• Can be used for long span (2~3 times compared to concrete bridge
span)
• Due to used for long span, amount of pier can be reduce (cost savings)
• Ductility, gives the warning before failure. Can be evacuate safely
PTKP possible to make a clean steel with the existed facility
 Low Sulphur (0~0.005%) and
Iron Making Phosphor (0~0.02%)
Steel Making
 Clean steel (Secondary refining)

Plate Mill
Continuous Casting

To produce the
and make a of
Support Delivery Condition: steel plates
 As-Rolled
 Online Normalizing
 TMCP without ACC
“
The solution is using
method
as a substitutions of heat treat facilities to get the
high mechanical properties

The concept is how to

Proper reheating Proper Metallurgical

Controlled the Design
Temperature in the
Rolling Schedule (Using Nb and Ti as a precipitation
furnace hardening and grain refinement)

Grain refinement is a key to

obtain the high mechanical
properties.

High Mechanical
Properties Material
The illustration of the that PTKP applied for
“AGS Controlled By Micro
Alloyed Elements (Nb, Ti, etc.)”

High reheat temp + plastic

deformation process :
Refine the coarse austenite grain
through the presence of Nb and
Ti precipitate in recrystallization
zone

Reduction above Ar3 temp

(Non-recrystallization zone) :
“Reduction Below The form of austenite grain was
Recrystallization Purpose” in fine and pancake form. And
also appear the deformation
band

Air cooling
(entering the ϒ+α zone):
The ferrite grain starts to
nucleate on grain boundaries
and deformation band

TMCP tried to applied

PTKP can achieve the good mechanical (Tensile and Impact Test) result with TMCP process

Tensile Test Result (Top / Transverse)

Thickness VS YP Thickness VS TS
575 660

650

550 640

630

YP (MPa) 525 620

TS
610
500
600

590
475
580
460
570 570
450
19 20 21 22 19 20 21 22

Thickness (mm) Thickness (mm)

Impact Test Result (Top / Longitudinal / -23C) CEQ Result (Max 0.44%)
Process Capability of CEQ
IV AVG vs Thickness USL
300
P otential (Within) C apability
Cp *
250 C PL *
C PU 6.01
IV AVG (Joule)

C pk 6.01
O v erall C apability
200
Pp *
PPL *
PPU 2.16
150 P pk 2.16
C pm *

100

50 48

19 20 21 22
Thickness
0.38 0.39 0.40 0.41 0.42 0.43 0.44 0.45
Without accelerated cooling facilities, we can achieve

19mm / FGS :11.39 20mm / FGS : 11.87 21mm / FGS : 12.15

In the mid of 2019, PTKP installed the new Accelerated Cooling (ACC) facility in our Plate Mill

“To extend the high performance product lineup, thickness range and increase the productivity”
Before

After

Nishioka, K.; Ichikawa, K.: Progress in thermomechanical control of steel plates and their
commercialization, Sci. Technol. Adv. Mater., 13 (2012), pp 1–20
In the mid of 2019, PTKP installed the new Accelerated Cooling (ACC) facility in our Plate Mill

Planned to produce 60 kg grade steel plate

TMCP New line Up

TMCP+Acc
A841-B-C2

API-2W-50

API-X52M

API-X56M

API-X65M

EH36-TM

EN-S355KT -40

E-TM

JS-SM570TMC

0 10 20 30 40 50 60
Thickness (mm)
 High elastic
Characteristic

[Yield Strength]

Basic Material High Toughness

Strength And
[Tensile Strength] Good Weldability

“Contributing to Indonesia’s Growth Through Excellent Steel Quality”

Thank You