Krakatau sets higher capex of $200m
Wednesday, December 21 2016 - 04:11 AM WIB
Petromindo
IDX-listed steel maker PT Krakatau Steel Tbk plans a higher capital expenditure (capex) of US$200 million next year, compared to the estimated $180 million for this year, Bisnis Indonesia reported on Wednesday.
The paper quoted Krakatau President Director Sukandar as saying that the capex will be used to help finance a number of projects including second hot strip mill, blast furnace, and push pull picking line.
The capex will be funded among others by bank loans, he added.
Regarding the blast furnace project, Sukandar said that the first blow in process has been pushed back to first quarter of 2017 from the initial plan of end of this year.
Meanwhile, Krakatau Marketing Director Dadang Danusiri said that the company plans higher sales volume of 2.6 million tons next year compared to the 2.3 million tons target for this year.
He said that the company will supply more steel products for pipeline projects such as gas distribution and power transmission projects. (*)