Krakatau to build second hot strip mill
Wednesday, July 9 2014 - 04:15 AM WIB
IDX-listed steel maker PT Krakatau Steel Tbk plans to expand production capacity of hot rolled coil (HRC) to 3.9 million tons per year by building a second hot strip mill to capitalize on growing domestic demand.
The company said in a statement Tuesday that the 1.5 million tons per annum mill will be built in Cilegon, Banten, near the raw material slab production facility of PT Kraktau Posco. The second mill is expected to start production in 2017.
On July 4, Krakatau signed an agreement with contractor for the construction of the mill, a consortium of SMS Siemag AG of Germany and PT Krakatau Engineering.
Funding for the project will be taken from proceeds of the company?s initial public offering (IPO) in 2010.
Editing by Reiner Simanjuntak