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Krakatau Steel officially launches second hot strip mill
The company launched its first hot strip mill in 1983 under then-president Soeharto.
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Krakatau Steel employees watch the production of the first hot rolled coil (HRC) steel in the company's second hot steel mill in Banten on May 17, 2021. (Courtesy of Krakatau Steel)
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tate-owned PT Krakatau Steel officially launched on Tuesday a new hot strip mill, the top Indonesian steelmaker’s second such facility in nearly four decades, to expand its domestic market share.
After beginning operations in May, the new strip mill was inaugurated by President Joko “Jokowi” Widodo in Banten on Tuesday. Krakatau Steel launched its first hot strip mill in 1983 under then-president Soeharto.
Krakatau Steel president director Silmy Karim, speaking on Tuesday, said the new steel mill, which cost US$521 million, had an annual production capacity of 1.5 million tons of hot rolled coil (HRC) steel.
Most of the output is intended for the domestic automotive industry.
“We believe national steel consumption will continue growing in line with domestic infrastructure, industry and economic development,” he said.
He added that, with the second steel mill operational, the company's HRC output was 3.9 million tons a year, which compared with domestic demand between 4.8 million and 5.3 million tons annually.
The company commanded a 38.29 percent market share in the domestic HRC market last year, up from 29 percent in the preceding year, according to its annual report.
