JAKARTA (Yosefardi) – State steel producer PT Krakatau Steel Tbk (KRAS) cuts its capital expenditure (capex) to US$500 million from initial plan of US$800 million, mainly used to fund blast furnance complex in Cilegon (Banten).
It spent US$499 million for capex last year. The company had secured loan of US$450 million from Export Credit Agency (ECA).
KRAS reported loss of US$13.9 million in 2013 due to lower world steel prices. Revenue also declined 8.87% to US$2.08 billion.
Weaker rupiah contributed to declining import of iron, steel, and their products to US$14.3 billion last year, down from US$15 billion in 2012. Its assets totaled US$2.38 billion while liability amounted US$1.33 billion.