Krakatau Steel Business Growth and Development

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Krakatau Steel has been a major player in Indonesia's steel industry for decades, with a rich history that dates back to 1973. It was established as a state-owned enterprise to produce steel products for the country's growing infrastructure needs.

The company's business growth and development have been remarkable, with a significant increase in production capacity over the years. In 2019, Krakatau Steel produced 4.3 million tons of steel products, a 10% increase from the previous year.

Krakatau Steel's strategic partnerships and collaborations have also played a crucial role in its business growth. The company has partnered with international companies to enhance its technology and production capabilities, resulting in improved product quality and increased efficiency.

Production and Facilities

Krakatau Steel has six production plants, making it the only integrated steel plant in the country. These plants produce a wide range of downstream products from upstream raw materials.

The production process starts with a direct reduction plant, where iron ore pellets are processed into iron using natural gas and water. This is a crucial step in producing steel products.

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Credit: youtube.com, Krakatau Engineering - Krakatau Posco

Krakatau Steel's production facilities include a slab steel plant and a billet steel plant, where irons are mixed with scrap and other materials to produce slab steels and billet steels. Slab steels are then reheated and rolled into hot rolled coils and plates.

The company also has a wire rod mill, which rolls billet steels into wire rods used for various applications. In 2017, PT Krakatau Nippon Steel Sumikin started operating its galvanized steel plant in Cilegon, Banten.

Krakatau Steel's production facilities have a total capacity of millions of tons per year, with some plants having specific capacities, such as PT Krakatau Posco's 3 million tons/year and PT Krakatau Osaka Steel's 500,000 tons/year.

Production Facilities

Krakatau Steel has six production plants, making it the only integrated steel plant in the country.

These plants produce a wide range of downstream products from upstream raw materials, including steel products for various industries.

The company's production processes start with a direct reduction plant that processes iron ore pellets into iron using natural gas and water.

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The irons are then fed into electric arc furnaces in the slab steel plant and the billet steel plant, where they are mixed with scrap, hot briquetted iron, and other materials to produce two kinds of steels, namely slab steels and billet steels.

Slab steels are reheated and rolled in a hot strip mill, becoming hot rolled coils and plates that are used for shipbuilding, pipes, buildings, and general structures.

Hot rolled coils can also be processed, re-rolled, and chemically treated to become cold rolled coils and sheets, which are used to manufacture car bodies, cans, cooking wares, and other applications.

Billet steels are rolled in a wire rod mill to fabricate wire rods that are commonly used for piano wires, bolts and nuts, steel cords, springs, and other applications.

PT Krakatau Nippon Steel Sumikin, a joint venture between NSSMC and PT Krakatau Steel, started operating its galvanized steel plant in Cilegon, Banten, in September 2017.

The plant produces cold-rolled steel and hot-dipped galvanized steel products for Indonesia's automotive industry.

Krakatau Steel's production facilities include a total of 16 plants, including PT Krakatau Posco, which has a capacity of 3 million tons/year, and PT Krakatau Osaka Steel, which has a capacity of 500,000 tons/year.

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Sarana Infrastruktur

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Krakatau Sarana Infrastruktur is a subholding company that officially established on June 30, 2021.

It's a subsidiary of Krakatau Steel, which is a government-owned company of Indonesia and a steel company of Indonesia.

Krakatau Sarana Infrastruktur has four main business areas: industrial estate, industrial water supply, energy needs, and ports.

These business areas make it the first fully vertically integrated industrial service holding in Indonesia.

Krakatau Sarana Infrastruktur is also a company based in Cilegon, and it's part of a larger group of companies that were established in 1970.

Here are some key facts about Krakatau Sarana Infrastruktur:

  • Manufacturing companies established in 1970
  • Steel companies of Indonesia
  • Government-owned companies of Indonesia
  • Companies based in Cilegon
  • Indonesian companies established in 1970
  • Companies listed on the Indonesia Stock Exchange
  • 2010 initial public offerings

Business and Development

Krakatau Steel has a significant presence in Indonesia's integrated steel industry, with a production capacity of 2.45 million tons of crude steel per year.

The company has diversified its business empire through its ten subsidiaries, which include high-added-value steel production, utility industry, infrastructure industry, EPC services, information technology, and medical services.

Krakatau Steel listed 20 percent of its shares on the Indonesia Stock Exchange (IDX) through an initial public offering (IPO) on November 10, 2010, marking a major milestone in its business development.

Here is a breakdown of Krakatau Steel's financial highlights from 2010 to 2016:

PT Tbk Employees

Credit: youtube.com, Business Development Manager

PT Tbk Employees are based in various locations across Indonesia. They have operations in Cilegon, Banten, where they engage in manufacturing, electric power generation, engineering services, and transportation.

PT Krakatau Steel (Persero) Tbk has multiple manufacturing facilities, including one in Jakarta Barat, DKI Jakarta, and another in Kota Jakarta Selatan, DKI Jakarta. They also have a presence in Jakarta, Jakarta, and Cilegon, Banten.

Here are the various locations where PT Tbk Employees are based:

  • Cilegon, Banten
  • Jakarta Barat, DKI Jakarta
  • Kota Jakarta Selatan, DKI Jakarta
  • Jakarta, Jakarta
  • Cilegon, Banten

Metal Treatments

Metal treatments are a crucial step in the manufacturing process, allowing for the creation of durable and long-lasting products.

By applying a nitriding treatment, metal parts can achieve a significant increase in hardness, up to 30% higher than their untreated counterparts.

This process involves the introduction of nitrogen into the metal's surface, creating a hard and wear-resistant layer.

The result is a part that can withstand heavy use and harsh environments, making it ideal for applications such as engine components and cutting tools.

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A chromizing treatment, on the other hand, provides an even harder and more wear-resistant surface, with a hardness increase of up to 50%.

This is achieved through the introduction of chromium into the metal's surface, creating a thin but extremely hard layer.

This treatment is often used for parts that require high wear resistance, such as gears and bearings.

The choice of metal treatment ultimately depends on the specific needs of the product and the environment in which it will be used.

Business Development

Krakatau Steel has had its fair share of milestones in business development. The company listed 20 percent of its shares on the Indonesia Stock Exchange (IDX) through an initial public offering (IPO) on November 10, 2010.

In 2011, PT Krakatau Steel (Persero) Tbk posted a net income of Rp17.9 trillion and net profit of Rp1.02 trillion. The company and its subsidiaries with assets worth Rp21.5 trillion had 8,023 employees that year.

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Krakatau Steel has a diversified business empire, which includes high-added-value steel production, utility industry, infrastructure industry, EPC services, information technology, and medical services. The company produces products for both the domestic and international market.

Here's a breakdown of the company's financial highlights from 2010 to 2016:

Krakatau Steel's expansion efforts have been significant, with the inauguration of various factories and supporting facilities. In 2014, the company inaugurated the second steel pipe factory owned by its subsidiary PT KHI Pipe Industry in Cilegon, Banten.

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Expansion and Growth

Krakatau Steel has made significant strides in accelerating Indonesia's integrated steel industry since its inception.

In 1977, President Suharto inaugurated several factories, including those for reinforced concrete and steel profiling, along with the Cigading Port.

The construction of facilities for sponge iron, steel billets, wire rods, a 400 MW steam power plant, a water treatment centre, and PT KHI Pipe was completed and became fully operational two years later.

Credit: youtube.com, Krakatau Engineering Profile 2023

Expansion and modernisation efforts continued into 1993, marking a significant period of growth for the company.

Krakatau Steel also has several joint ventures or affiliations, such as PT KHI Pipe Industry.

In 2011, the company and its subsidiaries had assets worth Rp21.5 trillion and employed 8,023 people.

The company's net income in 2011 was Rp17.9 trillion, with a net profit of Rp1.02 trillion.

Krakatau Steel's growth continued with the inauguration of the second steel pipe factory owned by its subsidiary PT KHI Pipe Industry in Cilegon, Banten in 2014.

Contact and Information

Krakatau Steel can be reached through their contact details located in Cilegon, Banten. Their address is Jalan Industri No. 5, PO. Box 14, 42435.

You can contact them via phone at +62 254 392 159 or send a fax to +62 254 372 246. For email, you can reach out to [email protected]. Their official website is www.krakatausteel.com.

Krakatau Steel is associated with several companies including Steel Pipe Industry of Indonesia, Jaya Pari Steel, Waskita Karya, Timah, and Wijaya Karya.

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Contact Details

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If you need to get in touch with Krakatau Steel, their contact details are easily found.

You can send a letter to Jalan Industri No. 5, PO. Box 14, Cilegon, Banten - 42435.

Their phone number is +62 254 392 159, and you can also reach them via fax at +62 254 372 246.

You can also email them at [email protected] or visit their website at www.krakatausteel.com.

Krakatau Steel has partnerships with several companies, including:

  • Steel Pipe Industry of Indonesia
  • Jaya Pari Steel
  • Waskita Karya
  • Timah
  • Wijaya Karya

Sign in to see known contacts at PT (Persero) Tbk

To sign in and see known contacts at PT (Persero) Tbk, you'll need to access their website.

PT (Persero) Tbk has a dedicated website where you can find information about their company, including contact details and known contacts.

Their website is a great resource for getting in touch with the right people at PT (Persero) Tbk.

You can find the website by searching online for PT (Persero) Tbk or by visiting their official website through a search engine.

PT (Persero) Tbk's website is available in multiple languages, including English and Indonesian.

Krakatau Steel

Credit: youtube.com, KRAKATAU STEEL NEW IDENTITY (OFFICIAL)

Krakatau Steel is a State-Owned Enterprise (BUMN) in Indonesia.

It's the largest steel mill company in Indonesia and even in Southeast Asia.

PT Krakatau Steel was established on August 31, 1970.

As a public company, PT Krakatau Steel has several subsidiaries.

One of its subsidiaries is PT Krakatau Engineering, which is wholly owned by PT Krakatau Steel (Persero) Tbk.

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Frequently Asked Questions

Is Indonesia aims for $1.5 billion restructuring at Krakatau Steel?

Yes, the Indonesian government is aiming to finalize a $1.5 billion loan restructuring deal for PT Krakatau Steel by October.

What is the capacity of Krakatau Posco?

Krakatau Posco has a production capacity of 3.2 million tons, making it a significant player in the steel industry.

Angie Ernser

Senior Writer

Angie Ernser is a seasoned writer with a deep interest in financial markets. Her expertise lies in municipal bond investments, where she provides clear and insightful analysis to help readers understand the complexities of municipal bond markets. Ernser's articles are known for their clarity and practical advice, making them a valuable resource for both novice and experienced investors.

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