Jakarta. State controlled steel maker Krakatau Steel will increase its investment by 70 percent this year to build a hot strip mill in Cilegon, a coastal industrial city in Banten.

The company would spend $387 million in the capital expenditure, up from $227 million spent last year, said Krakatau Steel's finance director Anggisari Hindratmo on Tuesday (15/03).

The hot strip mill will be built on a 48 hectares area in the company's industrial complex Krakatau Industrial Estate Cilegon. The mill, which reheats steel slab and rolls it into hot rolled coil has a capacity to produce 1.5 million metric tons of thin steel coil a year.

Anggisari said Krakatau Steel will use the $260 million loan from Germany's Commerzbank and the remaining proceeds from its initial public offering in 2010 to finance the expansion.

A consortium of Germany's SMS Siemag Aktiengesellschaft and the company's unit Krakatau Engineering would work on design, procurement, construction of the mill.

 

Source : beritasatu.com

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