Osaka Steel to Shut Down Indonesian Factory, Cut 500 Jobs

Japanese steelmaker Osaka Steel will close its loss-making joint venture in Indonesia by the end of this year. The move will result in the loss of approximately 500 jobs. The company operates the plant in Cilegon, Banten province, in partnership with Indonesian state-owned Krakatau Steel. It produces wire rods, a basic steel product used in construction and manufacturing. Osaka Steel stated that the decision was made due to continuous financial losses. The Indonesian venture has struggled against cheaper imports and rising costs for raw materials. The global economic slowdown has also reduced demand. The company will now focus its resources on its core business in Japan. It is currently negotiating the details of the shutdown with its joint venture partner and local authorities. The closure highlights the ongoing challenges for heavy industry in competitive global markets. It also deals a blow to local employment in the Cilegon industrial region.