Krakatau to build new coal-fired power plant

By Brigida Ernestina Elu Wea

IDX-listed steel giant PT Krakatau Steel Tbk plans to develop a new 150 MW coal-fired power plant at its steel plant complex in Cilegon, Banten, to meet growing internal demand for electricity as the capacity of the steel plant is being expanded.

Krakatau Steel President Director Sukandar (one name) said that the electricity output will be entirely allocated for internal use. He added that the project is currently at the pre-qualification tender stage.

He said that the company has prepared the necessary financing including from external sources as the company has standby loans worth US$260 million. He did not say when the construction of the power plant will start and complete.

Krakatau is developing a second hot strip mill, with production capacity of 1.5 million tons per year, in Banten, which is projected to start production in the first half of 2018 as part of expansion program to meet growing domestic demand in the future. Krakatau currently has annual production capacity of 3.9 million tons of hot rolled coil (HRC).

Editing by Reiner Simanjuntak