Krakatau to increase steel output by more than 16%

IDX-listed steel maker PT Krakatau Steel Tbk aims to increase steel output by around 16 percent to 2.6 million-2.7 million tons this year from 2.23 million tons last year, Kontan reported on Wednesday.

The paper quoted Finance Director Tambok P. Setyawati as saying that demand for steel products is expected to increase amid new construction and infrastructure projects at home.

Price is expected to strengthen as China plans to cut down production. As such the company will try to win contracts from customers which had previously turned to products imported from China.

Tambok said that Krakatau expected higher revenue this year from US$1.34 billion last year. The company was still in the red with a net loss of $171 million last year. Thus, she said that Krakatau will continue efficiency programs.

To help realize its corporate targets, Krakatau has set aside $300 million for capital expenditure this year. (*)