Krakatau Steel's subsidiary and companies from South Korea's Pohang Steel and Iron Company (POSCO) will form a new joint venture in mid 2012. Later, in the joint venture, KRAS will control 30% of shares companies that will be enlarged to 45%, and the rest belongs to POSCO. The new company plans to run a cement plant with a capacity of two million tonnes per year and chemical plants. In addition the joint venture subsidiary will also build a power plant that also utilize the results of steel production wastes.