Krakatau Steel flags off maiden export shipment to Malaysia

Jakarta (ANTARA) – State-owned steelmaker PT Krakatau Steel (Persero) Tbk dispatched its first shipment of Hot Rolled Coil (HRC), Hot Rolled Plate (HRP), and Hot Rolled Pickled and Oiled (HRPO) products to Malaysia on Monday.

The shipment was sent from its “Bandar Samudera” Seaport in Cilegon, Banten province, PT Krakatau Steel president director Silmy Karim said in a statement that ANTARA received in Jakarta on Monday.

“The shipment of steel products in January this year has risen to 31,766.18 tonnes from 830.97 tonnes in January, 2020. This is a good start to improve our sales performance,” Karim informed.

Besides Malaysia, the company also plans to export its products to Australia, Italy, and Spain, he said, adding that Krakatau Steel had set a target of exporting HRC, HRP, and HRPO products to Malaysia.

The steelmaker exports HRP products to Australia and HRC products to Italy and Spain. Most of Krakatau Steel’s products are used for laying the general structure as well as in pipes and tubes by the destination countries, the company said.

“The Krakatau Steel management has taken advantage of the novel coronavirus pandemic situation to infiltrate the world’s steel market, which is open amid disruptions in supply chain,” Karim said.

In 2020, Krakatau Steel recorded an export volume of 128,341.9 tonnes, or around 12 percent of its total sales volume, which stood at 1,603,732 tonnes.

This year, the company has set a target of increasing its sales volume by up to 2,040,000 tonnes, 150 thousand tonnes of which are expected to be exported.

ANTARA has reported that the Krakatau Steel management has been striving to improve the company’s performance over the past year.

Last year, Karim said the company has been able to slash costs by up to 50 percent in the past two years.

In December, 2020, Krakatau Steel finance director Tardi had revealed that the company planned to issue mandatory convertible bonds worth Rp3 trillion as part of the national economic recovery program.

The mandatory convertible bonds would be issued all at once and disbursed in two tranches. The first tranche of the bonds, valued at Rp2.2 trillion, was issued at the end of 2020, while the remaining Rp800 billion would be issued in 2021.

With the mandatory convertible bonds, the management is expected to be able to realize the 2021 business plan with a sales target of 170 thousand kilo tons per month, Tardi said.

 

Source: Antara News

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