India?s Essar, Tata eyeing strategic partnership with Krakatau Steel

Three Indian investors, Essar Group, Tata Steel, along with Arcelor Mittal and South Korean firm Samsung have expressed interest to become a strategic partner of state owned steel producer PT Krakatau Steel (KS), Bisnis reported Monday.

 

State Minister of State Enterprises Sofyan A. Djalil confirmed in Jakarta last Thursday that his office had received a letter from an Indian investor. According the newspaper, the letter is from Essar.

 

“We regard it (the letter) as a proposal. What is clear is that we will make internal improvements at KS first, including improvement in technology and gas price,” he said.

 

Meanwhile, KS chief commissioner Amir Sambodo confirmed that the four investors are interested in becoming KS strategic partners.

 

According to Amir, KS privatization process would be discussed in the company’s general shareholders meeting. “What is clear is that we have agreed on privatizing KS through a strategic partnership mechanism,” he said.

 

Essar once offered KS a joint project to build a direct production iron facility, with a capacity of 1.5 million tons per year, he added. (*)