Jan 18, 2011

Krakatau Steel jacks up capex to Rp5 trio

Indonesia's largest steel maker PT Krakatau Steel (Persero) Tbk (KRAS) plans to jack up 2011 capital expenditure (capex) to Rp5 trillion from initial size of Rp3.31 trillion.
The capex will be used by the company to establish blast furnace facility. "The facility establishment will be commenced this year," said Irvan K. Hakim, Krakatau Steel Marketing Director, said as reported by media today.
The steel maker will initiate the early stage of two blash furnace facilities in 2011. To build one facility, KRAS will cooperate with Pohang Steel and Iron Corporation (Posco) and another one will be established by KRAS.
Krakatau will use the proceed from IPO and seek bank loan facilities. "The portion hasn't determined yet."

Disclosure: No position at the stock mentioned above.  

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