Krakatau Steel Preparing 555.78 Million Dollars Capex

INDUSTRY.co.id - Jakarta- Krakatau Steel Limited Company (Persero) Tbk prepares capital expenditure (capital expenditure / capex) of 555,78 million US dollars throughout 2018.

President Director of Krakatau Steel Mas Wigrantoro Roes Setiyadi after the General Meeting of Shareholders of Book Year 2017 in Jakarta, Wednesday, said the source of capital expenditure will come from the company's cash and bank loans.

"The amount of 'capex' 555.78 million US dollars," he said.

Wigrantoro explained that the capital expenditure will be used to revitalize the plant and repair, including the development of steel mills, small share investment, and parent investment (the company).

For 2018, the company targets overall performance growth of up to 7 percent. While the increase in sales this year is targeted to 40 percent.

The company's performance growth is expected to be encouraged by the positive performance of its subsidiaries.

Krakatau Steel currently has 11 steel and non-steel subsidiaries that contribute 25 percent to the company's revenue.

"We hope that the contribution could rise to 50 percent, which in the steel sector strengthens the business 'core' in steel," he told media crews.

There are also other business entities focus on the development of each business.

Director of Marketing of Krakatau Steel Purwono Widodo said there are many challenges that may be faced by the company this year.

One of them is wary of the impact of imposition of steel and aluminum import duties by the United States that affect the possibility of a flood of Chinese steel products to Asia, especially Indonesia.

 "We hope that the government can take action and protect local steel from unfair trade, one form of protection by upholding the rules of increasing domestic production use (P3DN) and the domestic component level prerequisites (TKDN)," he said.