Indonesian steel manufacturer PT Krakatau Steel has launched a new hot strip mill (HSM 2) to expand its share of the domestic market and reduce Indonesia's dependence on imports.

This mill will be the company’s second hot-rolled strip mill. The first hot-rolled strip mill was launched in 1983.

The new plant was set up with an investment of US$521 million, with an annual production capacity of 1.5 million tons of hot-rolled coil.

The plant's plan was to expand its production capacity to 4 million tons per year.