POSCO Daewoo to supply $150m in materials to Indonesian dockyard

POSCO Daewoo, a subsidiary of steelmaker POSCO, will supply materials and equipment worth $150 million to a state-run Indonesian dockyard to build large vessels, the company said Thursday.

POSCO Daewoo and Indonesia’s largest state-run shipyard PT Penataran Angkatan Laut inked a memorandum of understanding Wednesday over providing equipment needed for building 10 patrol ships and one logistics support ship. 

The 11 ships will be taken over by the Indonesian government once they are built.

Since 2006, the Korean company has kept close ties with PT PAL, providing technology, training and know-how to build two landing platform docks in Indonesia.

Since 2014, POSCO Daewoo has also supplied major equipment for building two landing platform docks for the Philippine Navy. They are currently under construction by PT PAL.

Both parties vowed to further cooperate in business as the Indonesian government is planning to reorganize its six shipyards starting from next year.

By Lee Hyun-jeong (rene@heraldcorp.com)