Krakatau to start construction of new steel mill next month
Wednesday, July 8 2015 - 01:44 AM WIB
IDX-listed steel maker PT Krakatau Steel Tbk plans to start construction of a hot strip mill in Cilegon, Banten, next month with a ground-breaking ceremony scheduled for August 25 in conjunction with the company?s 30th anniversary celebration, Kompas reported on Tuesday.
The paper quoted Krakatau Corporate Secretary Iip Arief Budiman as saying that the construction process is expected to take about two years to complete in the hope that the new mill, which will have a capacity of about 500,000 tons per annum, will be completed in 2017.
The US$400 million mill will be developed by PT Krakatau Nippon Steel Sumikin (KNNS), a joint venture between Krakatau and Japan?s Nippon Steel. Nippon Steel owns 80 percent stake in KNSS, while the remaining 20 percent is held by Krakatau.
The output from the planned new steel mill will be dedicated primarily to the automotive sector. (*)