JAKARTA (Yosefardi) – State steel producer PT Krakatau Steel Tbk (KRAS) has secured loan of US$200 million from some foreign banks, facilitated by Sumitomo Mitsui Banking Corporation.
The loan will be used to fund the steel plant project under cooperation with South Korea-based Pohang Iron and Steel Company (Posco). The project costs US$2.9 billion. KRAS holds 30% interest on the project, handled by joint entity PT Krakatau-Posco.
KRAS reported net loss of US$10.09 million in nine months of 2013, dropped significantly from US$43.8 million in the same period of last year on better operating margins.
Falling costs of raw materials contributed to the state-owned steel producer’s US$8.16 million of operating profit against US$9.5 million of operating loss in nine months of 2012.