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Nippon Steel & Sumitomo Metal Corp. will step up local production of automotive flat steel products in Indonesia to meet growing demand from Southeast Asia’s largest auto market.

PT Krakatau Nippon Steel Sumikin — the Japanese steelmaker’s joint venture with the state-backed PT Krakatau Steel — will gradually replace imported sheet steel from Japan with products from a local plant, the joint venture’s president, Naomasa Arita, said at a recent plant opening ceremony in Cilegon, Banten province.

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