Adding Steel Production Capacity, Krakatau Steel Will Build A New Factory Next Year

President Director of Krakatau Steel Purwono Widodo. (Photo: Theresia Agatha/VOI)

JAKARTA - PT Krakatau Steel (Persero) Tbk or KRAS plans to increase its production capacity through the construction of a new factory starting in 2024.

This was stated by the President Director of Krakatau Steel Purwono Widodo after being met at the IISIA Business Forum (IBF) 2023 at ICE BSD, Tangerang, Thursday, November 9.

"Yes, it can be said that the factory is new, but the company is the same. That is, increasing capacity is not in the sense of creating a new company," said Purwono.

Purwono said that currently the plan has entered the feasibility study (FS) stage, so funding from investors or the government will begin next year.

"Yes, this year it is FS, funding and so on in 2024 should have started because if not, we lack raw materials. That, right, produces slabs," he said.

He targets the investment value of the construction of the new plant to reach around US$3.3 billion.

"In general, for upstream it is 1 billion US dollars for a capacity of 1 million tons. So, for our (need) 3 million tons, yes, around 3 billion US dollars.

"When we were in the automotive, we said that this is not import raw material, we will add it for control, yes, around 300 million US dollars. So, a total of 3.3 billion US dollars," he said.

When asked further about when the new factory construction schedule will begin, Purwono said it was sought starting next year.

"Yes (building in 2024) pray," he added