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Krakatau Steel hopes to increase market share after capital injection
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An employee works on steel pipes at Krakatau Steel in Cilegon, Banten, in this file photo. The publicly listed steelmaker is preparing a number of strategies to curb its ballooning losses and survive amid low steel prices. (The Jakarta Post/-)
S
tate-owned steel producer Krakatau Steel aims to eventually control 50 percent of the market if a Rp 2.4 trillion (US$180.86 million) capital injection is approved by the House of Representative, a company executive has said.
Krakatau Steel president director Sukandar Krakatau said on Wednesday the company would use the capital injection to build infrastructure to reduce its energy costs in a bid to increase its competitiveness.
"International prices are currently lower than domestic prices, and the automotive industry, which is dominated by Japan, prefers to use Japanese-made steel," Sukandar told lawmakers during a hearing with the House, adding that the company's energy costs were 58 percent higher than those of Indian and Chinese producers.
Imported products have eroded the competitiveness of locally made steel even though Krakatau Steel remains a leader in the industry with its 39 percent market share, he asserted.
Sukandar added that the company expected to install new equipment that would increase productivity from 362 tons per person per year to 1,162 tons per person per year by 2020. (dan)
