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View all search resultsKrakatau Steel anticipates double-digit growth on shipbuilding demand
The state-owned steelmaking giant has forecast double-digit growth on expectations of a surge in demand from the national shipbuilding industry, in line with Danantara's push to build the sector toward a more circular model.
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Employees watch on May 17, 2021, as the first hot rolled coil (HRC) emerges from the production line at Krakatau Steel’s second hot strip mill in Banten.
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ublicly listed PT Krakatau Steel is forecasting double-digit growth in the coming years, as it expects a surge in demand from the domestic shipbuilding sector.
The optimism is fueled by a renewed push to strengthen the national maritime industry as well as a specific mandate from state asset fund Danantara to supply materials to state-owned shipbuilder PT PAL Indonesia, which manufactures vessels for civilian and military use.
Hernowo, Krakatau Steel’s commercial, business development and portfolio director, said the state-owned steelmaker was maintaining steady supplies to domestic shipbuilders.
“So now, Krakatau Steel supplies approximately 400,000 tonnes [of steel to shipbuilders] per year. Yes, around that amount per year is routine, the routine demand,” he said on Wednesday, as quoted by Bisnis.com.
Hernowo added that the company’s projected growth depended on a strong commitment to local content, expressing hope that revitalization of the maritime industry would be supported by robust national policies mandating the use of locally made materials.
He also highlighted huge potential for growth if shipbuilders focused on buying materials domestically instead of importing them.
Building ships required a lot of steel, and redirecting this demand inward could generate a significant multiplier effect across the domestic supply chain, Hernowo said.
