Osaka Steel, a Japanese steel manufacturer, announced the closure of its Indonesian subsidiary, Krakatau Osaka Steel. This decision was due to a significant drop in infrastructure spending by the Indonesian government, which caused demand to plummet.

Despite returning profitable in 2021, the venture has suffered net losses since 2022, including a 1.3 billion yen loss in 2024.

Krakatau Osaka Steel’s production will cease on April 30, 2026, with final shipments and sales ending on June 30.

The company is now coordinating the withdrawal details with its partner, state-owned Krakatau Steel. The total financial impact remains undetermined. The closure decision was made after failed attempts to secure steady profits or find a buyer for the business.