Krakatau Steel allocates much lower capex in 2018
Thursday, December 28 2017 - 01:45 AM WIB
IDX-listed steel maker PT Krakatau Steel Tbk said it will allocate only US$390 million for capital expenditure (capex) in 2018, much lower than the $837 million allocated for 2017.
Krakatau President Director Mas Wigrantoro said on Wednesday that the capex will be primarily used to finance the company?s existing projects.
He said that the planned capex will be financed through a combination of loans and internal funds including proceeds from its 2016 rights issue where the company raised Rp 1.87 trillion.
Mas said that the company allocated lower capex in 2018 as a number of expansion projects are nearly completed, thus will not require much funding.
In 2017, much of the company?s capex was allocated for the completion of its blast furnace facility. Mas said that the company has set a target for the first blow in of the project in the first quarter of 2018.
Krakatau is also currently developing a number of projects including a second hot strip mill with total estimated investment of $450.4 million, and a 1x150 MW coal-fired power plant worth $174.5 million. Part of the capex will be allocated to finance projects by Krakatau subsidiaries. (*)