Source disclosure: January 23, 2026
OSAKA STEEL CO.,LTD. [5449.T]
TOKYO, Jan 23 (Pulse News Wire) – Osaka Steel CO.,LTD. (5449.T) announced today that it will cease operations at its Indonesian subsidiary, PT.
Krakatau Osaka Steel (KOS). The decision was made after a review found that continuing the operation would be challenging due to deteriorating market conditions and ongoing losses. KOS, established in 2012 as a joint venture with state-owned PT. Krakatau Steel, began production in 2017.
Despite achieving profitability in 2021, the company faced persistent quarterly negative free cash flow since 2022 year. Recent economic downturns in Indonesia, coupled with reduced infrastructure spending by the government, led to a significant drop in steel demand and sales volumes, further exacerbating the situation. Production at KOS is scheduled to stop on April 30, 2026, with final shipments expected to conclude by June 30, 2026. Osaka Steel noted that detailed plans for the withdrawal from Indonesia, including methods and timelines, will be disclosed once finalized and in accordance with legal requirements and stock exchange regulations.
The company anticipates recognizing related losses but has yet to determine the timing and amount of such charges.
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