REPUBLIKA, CILEGON -- President Susilo Bambang Yudhoyono visits Cilegon, Banten to inaugurate the new steel plant owned bt PT Krakatau Posco, subsidiary of state owned steel company, PT Krakatau Steel on Monday. The company is a joint venture between Krakatau Steel and Pohang Iron and Steel Company of South Korea.
The steel plant is located in Krakatau Industrial Estate Cilegon (KIEC), Cilegon, Banten. The factory is built on lands of 388 hectares. Krakatau Steel has 30 percent shares, while the rest by Krakatau Posco. Krakatau Steel plans to increase its ownership up to 45 percent.
The plant spent cost of 26.9 trillion IDR in the first phase. It will reduce Indonesia's import dependence over semi finish plate or slab. Krakatau Steel needs slab, which will be produced up to three million tonnes per year. During this time, Krakatau Steel must import slab from Novolipetsk, Russia.
Slab supply is one of important issues for Krakatau Steel. Without its supply, the steel plant production will be hampered. Esthi Maharani/Mutia Ramadhani
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