JAKARTA (Yosefardi) – State steel producer PT Krakatau Steel Tbk (KRAS) will accelerate its expansion on production capacity as global demand on steel products are growing.
The steel price is estimated to be stagnant, or equal to last year, but the steel industry now shows a positive picture as demand is growing.
Though recorded a loss in first quarter of this year, KRAS is still consistent to build new steel plants. It will build a new hot strip mill. KRAS is also now building blast furnace complex with capacity of 1.2 million tons of hot metal per year.
It suffered loss of US$49.67 million in first quarter of this year, compared to profit US$8.3 million in the same period of last year.
Net revenues declined 25% to US$459.49 million from previous US$615.97 million. Cost of revenue also fell 20% to US$448.94 million from earlier US$564.02 million.
KRAS also reported share in loss of associates of US$20.96 million, and foreign exchange loss of US$14.35 million.
Its assets totaled US$2.33 billion while liability amounted US$1.35 billion. It has cash and cash equivalent of US$194.11 million.