$300 Million Steel Plant Officially Operated in Cilegon

By : Ridwan And Aldi Firhand. A | Tuesday, August 07 2018 - 18:58 IWST

Director General of ILMATE Ministry of Industry Harjanto with Director General of KPAII Ministry of Industry I Gusti Putu Suryawirawan and Director of KNSS Djoko Muljono when he saw the steel factory PT KNSS (Photo: Doc. Ministry of Industry)

INDUSTRY.co.id - Cilegon, Director General of Metal, Machinery, Transportation and Electronics (ILMATE) Industry Ministry of Industry Harjanto inaugurated the Galvanizing Plant, Annealing and Processing Line (GAPL) PT. Krakatau Nippon Steel Sumikin (KNSS) in Cilegon, Banten, Tuesday (07/08/2018).

"With the operation of the PT. KNSS plant which will produce CRC and Galvanized Steel with a capacity of 480,000 tons per year, it is expected to continue to reduce dependence on similar imported products," said Harjanto.

Harjanto added, most vehicle manufacturers in Indonesia have used steel and local components. This also spurred optimization of the level of domestic content (TKDN).

According to Harjanto, steel products that are quite widely used in the automotive sector are types of Hot Rolled Steel Coil (HRC), Cold Rolled Steel Coil (CRC), and Galvanized Steel.

"So, the existence of this plant will provide positive benefits and impacts for the national economy through saving foreign exchange from import substitution, increasing tax revenues, as well as the use of raw materials and local labor. In addition, encouraging the development and strengthening of downstream industries in the country," he explained .

The plant is targeted to later absorb 280 workers with a total investment value of PT KNSS reaching USD300 million. Therefore, the Ministry of Industry appreciates the cooperation between PT. Krakatau Steel with Nippon Steel & Sumitomo Metal Corporation, which has been established since 2012 or six years ago.

Meanwhile, Director of KNSS Djoko Muljono said, as a leading producer of automotive steel in Indonesia and supported by professional human resources, KNSS is committed to supporting the advancement of the steel industry in Indonesia.

"Through advanced technology, KNSS will produce high-quality and high-quality steel sheets to deal with the needs of high-standard cars," he said.

KNSS is also optimistic that the products produced will be accepted by both domestic and foreign markets.

"The presence of the KNSS is expected to provide a significant contribution to the automotive industry in Indonesia," added Djoko.