Krakatau Posco steel output far below target

PT Krakatau Posco said that steel output in the first half of this year totaled 520,000 tons, or only about 26 percent of the full-year target of 2-2.5 million tons, Kontan reported Wednesday.

The paper quoted company Corporate Secretary Christiawaty Ferania K. as saying that the company has not been able to run production normally due to technical problem at its plant during the first three months of this year. She said that the plan resumed to normal operation in April.

Krakatau Posco is a joint venture between IDX-listed steel firm PT Krakatau Steel Tbk and South Korea?s giant Posco. It started commercial operation earlier this year. About 53 percent of its output is destined for the export market, with the remainder for the domestic market.

Despite the weak production in the first semester of this year, Christiawaty said that the company has no plan to revise downward its original full-year production target. (*)