PROFILE ON PT KRAKATAU STEEL

Krakatau Steel Group operates an integrated steel industry. Its holding company is state-owned steel maker PT Krakatau Steel (KS), which was established in 1971. It took over steel factory Trikora. KS is wholly owned by the government. It has increased its authorized capital several times. In 2003, its authorized capital was IDR 2 trillion (US$200 million).

In 35 years, here was no significant increase made in expanding its capacity. Currently KS has 35 million tons of annual production capacity. Its production still falls far short of the requirement in the country. The country’s downstream industry has to rely much on imports for steel basic materials.

At the time B.J. Habibie was Research and Technology Minister and chairman of the agency managing strategic industry including PT KS, the steel maker already planned to build an integrated upstream steel industry. However, the plan is never come to reality, because of the monetary crisis in 1998.

In 2006, PT KS has made another plan to build expansion plant for development of the pellet in South Kalimantan. South Kalimantan was chosen as the most suitable place as it has large iron ore reserves on the island of Sebuku, estimated to have deposit of 560 million tons of iron ores. So far the country still imports iron ore mainly from Brazil and Chile.

The palletizing plant will have 2 million tons annual production capacity for the beginning year. It was reported that five international companies have indicated interest in the project. They are Metallurgical China Construction (MCC) and Sino Steel from China, Essar and Ispat International from India, and Trans Asia International from Europe. The factory to cost around US$460 million is part of PT KS’s expansion program of US$ 897 million to be carried out by phases until 2010.

In utilizing the iron ore reserve, KS will cooperate with PT Sebuku Iron Leteric Ores (PT SILO) as the mining operator in the island of Sebuku and with CV Source Daya Alam which holds the mining authority in the Karang Tunggal sub-district, Tasikmalaya, West Java.

From part of its strategic plan, PT KS plan to expand its production capacity. In the first stage it will expand its capacity by 1 million tons a year in 2008 and continues the expansion program to bring its annual capacity to 10 million tons in 2013 and to 20 million tons in 2020.

Installed production capacity of PT KS in 2005.
Sponge Iron: 2.3 million ton per year (HYL I: 1 million tons; HYL III: 1.3 million tons)
Steel Slab: 1.8 million tons per year (Plant I: 1 million tons; Plant II: 800,000 tons)
Steel Billet: 675,000 tons per year
HRC: 2.5 million tons per year
CRC: 650,000 tons per year
Wire Rod: 450,000 tons per year

PT KS Subsidiaries

There is 3 subsidiary companies under PT KS, they are PT. Krakatau Wajatama (concrete reinforcing iron producer), PT KHI Pipe Industries, and PT Pelat Timah Nusantara (PT LATINUSA=Tin plate producer).

PT Karakatau Wajatama was establish in 1992 producing various types of high quality steel bars such as INP, IWF, H-Beam, U-Channel, and L-Angles, Deformed and Plain Bars and steel wire rod. This company has three production facilities – Section Mill, Bar Mill, and Cold Wire Drawing.

PT KHI Pipe Industries (PT KHI) was established in 1972, producing steel pipe. This company has an annual production capacity of 155,000 tons of spiral pipe. PT KHI is the only producer of spiral pipes in Indonesia with international recognition.

Its factory is located over a 160,000 m2 plot of land in Cilegon, producing welded spiral steel pipes with diameters from 4 to 8 inches from various types of steel with a thickness of up to 25mm. Its products include column pipes, oil and gas pipes, water pipe, and protection services.

PT LATINUSA was established in 1982 as a joint venture with PT Tambang Timah and Nusantara Ampera Bhakti. Latinusa produces tin coated thin steel plate as a basic material for can in the Cilegon Industrial Estate. Latinusa has an annual production capacity of 130,000 tons in sheet and rolls with prime quality (90%) and non prime quality (10%) that can be used for milk can or food critical, general can or non critical.


Supporting Infrastructure and Facilities

PT KS has supporting facilities separately managed such as an industrial estate under subsidiary PT Krakatau Industrial Estate Cilegon (PT KIEC), power plant under PT Krakatau Daya Listrik (PT KDL), water processing plant under PT Krakatau Tirta Industri (KTI), port facility under PT Krakatau Bandar Samudera (KBS), health care subsidiary under PT Krakatau Medika.

PT KIEC was established in 1982. KIEC was built to accommodate upstream and downstream steel and chemical industries. KIEC also has property business such as hotel, office building and sport facilities.

PT KDL was established in 1996, wholly owned by PT KS. The company operates a power plant supplying electricity to all consumers in the KIEC and surrounding areas. PT KTI produces clean water to supply consumers in the industrial estate and surrounding areas such as the public in Cilegon.

PT KBS operates the special port of Cigading in Cilegon, Banten. KBS handles loading and unloading of bulk cargoes such as iron ore, dry bulk, gypsum, sugar, soybean meal, coal, and scrap iron. With 855 m outer quay and 243 m deep quay and 75 m barge quay, it makes Cigading become one of big port in Indonesia with the deepest basin. The port could accommodate and serve 10 ships at the same time.

PT KS also has to subsidiaries operating as consultant. One is PT Krakatau Information Technology (Krakatau IT) was established in 1993. It operates as information technology service company. The second is PT Krakatau Engineering was established in 1988 operating as EPC (Engineering, Procurement, and Construction) contractor and consultant (studies, project management and industrial management).


List of Contacts

PT KRAKATAU STEEL
Address:
ADB Building
Jl. Industri No. 5, Cilegon 42435, INDONESIA
Website: http://www.krakatausteel.com/

PT KRAKATAU WAJATAMA
Address:
Wisma Baja Building, 7th Floor
Jl. Jend. Gatot Subroto Kav. 54, Slipi,
Jakarta Selatan 12950, INDONESIA

PT KHI PIPE INDUSTRIES
Address:
Wisma Baja Building, 7th Floor
Jl. Jend. Gatot Subroto Kav. 54, Slipi,
Jakarta Selatan 12950, INDONESIA
Website: http://www.khi.co.id/

PT PELAT TIMAH NUSANTARA (LATINUSA)
Address:
Jl. Letjen. S. Parman No. 7-8, Slipi,
Jakarta Barat 11480, INDONESIA
Website: http://www.latinusa.co.id/

PT KRAKATAU INDUSTRIAL ESTATE CILEGON
Address:
Wisma Baja Building, 8th Floor
Jl. Jend. Gatot Subroto Kav. 54,
Jakarta Selatan 12950, INDONESIA
Website: http://www.kiec.co.id/

PT KRAKATAU DAYA LISTRIK
Address:
Krakatau Industrial Estate Jl. Amerika I,
Cilegon 42443, Banten, INDONESIA
Website: http://www.kdl.co.id/

PT KRAKATAU BANDAR SAMUDERA
Address:
Jl. Letjen. S. Parman Km. 13, Cigading,
Cilegon 42445, INDONESIA
Website: http://www.cigadingport.com/

PT KRAKATAU INFORMATION TECHNOLOGY
Address:
Wisma Baja Building, 7th Floor
Jl. Jend. Gatot Subroto Kav. 54, Slipi,
Jakarta Selatan 12950, INDONESIA
Website: http://www.kit.co.id/

PT KRAKATAU ENGINEERING
Address:
Wisma Baja Building, 7th Floor
Jl. Jend. Gatot Subroto Kav. 54, Slipi,
Jakarta Selatan 12950, INDONESIA
Website: http://www.krakataueng.co.id/