Krakatau Steel To Build IDR5.9 Tln Blast Furnace Starting 3Q 2011
Dow Jones Newswires, Jakarta - 04/05/2011
PT Krakatau Steel (KRAS.JK) said Thursday that it plans to start building a blast furnace in the third quarter of this year to improve its long-term performance.
The blast furnace, expected to be completed by 2014, will cost around IDR5.9 trillion ($680 million) and will have the capacity to produce 1.2 million metric tons of steel a year, Indonesia's largest steelmaker said in a statement.
The company expects the new facility will improve its net profit by IDR245.58 billion in 2014 and IDR404.42 billion in 2015.
Krakatau's 2010 net profit more than doubled last year to IDR1.06 trillion from IDR494.67 billion a year earlier.
The Indonesian government owns a 80% stake in the company, which produced around 2.75 million tons of finished steel last year.