Krakatau Steel plans to start operating its newly competed blast furnace soon, Kallanish understands.
The Indonesian state-owned steel mill is expecting to blow-in its 1.2 million tonnes/year blast furnace next month at its Cilegon steelworks in Banten province, West Java, the company announced. The heating up process of the furnace’s hot stove was completed two weeks ago.
The company had initially targeted for the first blow-in to take place during the second quarter. With the start-up of new blast furnace, the company will reduce its dependence on imported slab. It currently imports around 600,000t of slab annually.
Krakatau expects to complete its new 1.5 million t/year hot strip mill during third quarter of 2019 and for first coil production to take place in fourth quarter 2019. The new strip will raise the company’s installed HRC capacity to 3.9 million t/year.
The company has targeted to boost its sales volume by 20% this year from 2017, company sources say on Thursday.
Last year, Krakatau sold 1.9 million tonnes of steel products. Sales comprised 1.008 million tonnes of hot rolled coil, 567,000t of cold rolled coil, 233,000t of long products and 93,000t of spiral & ERW pipes. The company also exported 31,000t of hot rolled coil products last year.