Krakatau Steel seeks strategic alliance with foreign firms

State-owned steel company PT Krakatau Steel (KS) is considering a strategic alliance with a number of world steel companies to improve its performance particularly in supplying iron ore.

The company`s president director, Daenulhay, at a press conference in Cilegon on Monday said KS would explore the possibility of developing a strategic alliance with four world companies and with domestic steel producers.

The four international companies it is considering are Essar International Ltd (India), Bao Steel, Ispat Ltd and Nanjing Iron Steel Co. Ltd, he said as quoted by Antara news agency.

He said the alliance was expected to be realized next year before the company conducted an initial public offering in 2009.

He said the alliance was also needed to meet the company`s production target of 20 million tons in 2020 from the currently two million tons a year.

Daenulhay also hoped the government would impose an export levy on iron ore to reduce exports of the raw material.

The company`s finance director, Fazwar Bujang, meanwhile reported that until September this year the company booked a pre-taxed profit of Rp 440.165 billion or Rp 292.198 billion after tax. (*)