Hot Strip Mill Factory Operates Again, Krakatau Steel Optimistic Moncer Sales In 2025

Rupiah (Photo: Antara)

JAKARTA PT Krakatau Steel (Persero) Tbk is optimistic that the company's sales performance can increase in 2025. This optimism departs from the company's Hot Strip Mill factory re-operation.

President Director of Krakatau Steel Muhamad Akbar said the Company is targeting a sales volume of 1.1 million tons on a consolidated basis for 2025.

"In 2025, with the target of re-operation of the Hot Strip Mill Factory, we project that there will be an increase in steel sales revenue and volume," he said in a virtual public expose of Krakatau Steel, Monday, December 30.

Furthermore, Akbar said this opitism was also strengthened by the cooperation between the company and 23 distributor companies, manufacturers and coil centers for product supply for the next 2 years.

"This has also been strengthened after we signed a Long Term Supply Agreement with 23 distributor companies, manufacturers, and coil centers for steel product supply reaching 38,500 tons per month for the next 1 to 2 years," he said.

As for 2024, Krakatau Steel itself has succeeded in implementing a Long Term Supply Agreement of 1,256,000 tons, with details of Hot Rolled Coil 786,000 tons and Cold Rolled Coil of 470,000 tons.

On a consolidation basis, until the third quarter of 2024, the company has recorded revenues of US$657.5 million or equivalent to Rp. 10.61 trillion (assuming an exchange rate of Rp. 16,142 per US dollar).

The details are steel product revenues worth US$436.1 million and Non-State Revenues worth US$221.4 million.

Akbar said the increase in revenue was contributed by sales volume of 532,200 tons or 66.3 percent of total revenue.

"Until September 2024 on a consolidated basis, the Company also recorded a gross profit of US$64.3 million and the Company managed to reduce the SGA Fee by 15 percent through an efficiency program that was consistently implemented," said Akbar.