REPUBLIKA.CO.ID, JAKARTA - PT Krakatau Steel and PT Semen Indonesia will form a joint venture that will produce raw material of slag powder for cement manufacture, specialty of waste iron and steel. Both, the largest steel producer and largest cement producer, will allocate investment funds worth 310 billion IDR.

"The construction will start in July 2013 and operate in the end of 2014," President Director of Krakatau Steel, Irvan Kamal Hakim said after signing a memorandum of understanding (MoU) with President Director of Semen Indonesia, Dwi Sutjipto in Banten on Monday.

According to Hakim, preparation of construction plant is underway on an area of five hectares which is owned by Krakatau Steel in Cilegon, Banten. Raw material for making the special cement is derived from blast-furnace slag products and tar processing facility reached 750 thousand tons per year. It comes from two companies, Krakatau Steel and Krakatau Posco.

Currently, feasibility study of slag powder's mill has been completed. The two companies have just finished to form a subsidiary. Besides Krakatau Steel and Semen Indonesia, government also involves PT Banten Global Development (BGD) which is a regional-owned enterprises of Banten. Krakatau Steel and Semen Indonesia will own 45 percent of shares respectively while BGD has 10 percent of shares. 

Ikuti Whatsapp Channel Republika