Krakatau Steel, a state-controlled steel maker, is to spend $200 million in capital expenditure next year to complete several projects including a blast furnace and its second hot strip mill plants.

The capital spending would be up 11 percent from $180 million it estimated to spend this year.

President director Sukandar said Krakatau Steel has secured banks loan for the blast furnace and hot strip mill plants.

But, it still needs to find a $40 million loan to build a push pull picking line and reversing mill and another loan to develop a coal boiler to general 160 megawatts.

Krakatau Steel plans to complete its blast furnace in March and the hotstrip mill in 2019.

The company expects the $632 million blast furnace to help it reduce steel production costs by $58.2 per metric ton.

Krakatu Steel will also acquire 150 hectares of land from around Rp 700 billion ($51 million) to Rp 750 billion in Cilegon in Banten to expand its industrial developer unit Krakatau Industrial Estate Cilegon. The developer now has 350 hectares of land bank and plan to start selling industrial plots in the complex in 2018.

 

Source:jakartaglobe.id

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