Krakatau Steel Eyeing for 40 Percent Sales Increase in 2018

  • Font:
  • Ukuran Font: - +
  • A worker observe steel production process in a factory owned by Krakatau Steel in Cilegon. TEMPO/Tony Hartawan

    A worker observe steel production process in a factory owned by Krakatau Steel in Cilegon. TEMPO/Tony Hartawan

    TEMPO.CO, Jakarta - State-owned steel producer Krakatau Steel expects a 40 percent increase in sales volume in 2018, which would amount to 2.8 million tons of steel production.

    Krakatau Steel Corporate Secretary Suriadi Arif said that the goal is based on the 2018 projection regarding the increasing domestic needs of steel. Suriadi revealed that the domestic needs for steel in 2016 reached 12.7 million tons.

    “It is expected to continue rising in the coming years with an average of 1,000,000 tons of steel each year,” said Suriadi on Wednesday, January 24.

    Suriadi said that Krakatau Steel is optimistic with this year's target. Especially considering that the price of steel has seen a correction since 2016 and has continued to 2017.

    “The price of steel continues to decline since 2011 up to 2015. The current price of domestic HRC CFR in December 2017 reached US$562/mt, it’s an astonishing 260 percent increase compared to December 2015 which was only US$216/mt,” said Suriadi.

    According to Suriadi, Krakatau Steel will operate through a pattern that adopts a make-or-buy strategy, which is continuing to run a factory producing semi-finished products.

    Budiarti Utami Putri