Krakatau Steel has conducted its first production of hot rolled coil steel from the results of its newest steel smelting plant, Blast Furnace. HRC produced at the Hot Strip Mill facility is free good or prime quality, so it meets commercial steel specifications. Five steel slabs were successfully rolled on this HSM with a thickness of 4mm and a width of 1200mm and a length of 11,600 mm. The total weight is 22.9 tons for each HRC. Previously, the product from Blast Furnace in the form of hot metal or liquid steel was brought to the Company's steel slab plant for casting (casting) into steel slab. This Steel Slab Plant also has a role in regulating the chemical composition of a steel product so that it meets the qualifications for the use of certain desired steel. "By using liquid steel input from Blast Furnace, we were able to reduce the consumption of electricity and electrodes. We can reduce electricity consumption by around 30 percent, "said Silmy Karim, Director of Krakatau Steel. Silmy added, the decline in electricity was due to the steel slab factory receiving material already in the form of hot molten steel, so that the steel melting became less. The energy for heating is only used to prepare the furnace which has been filled with sponge iron and scrap to receive hot molten steel from the blast furnace. The Company is currently conducting an evaluation to test the reliability and efficiency of Blast Furnace operations. "In every assignment, I always encourage the resolution of existing problems, especially chronic problems. Therefore, Krakatau Steel Management is currently committed to resolving every project and problem that the Company is currently facing, and the completion of the Blast Furnace project is part of the current management efforts to complete projects that should have been completed, "added Silmy. With the production of steel slabs and HRC sourced from Blast Furnace, it will encourage the Company to produce high value added products starting from production in the upstream area (Blast Furnace and SSP). This has an impact on increasing the Company's competitiveness. It is hoped that the
JAKARTA (TheInsiderStories) PT Krakatau Steel Tbk (IDX: KRAS) to run two strategic projects in this year as part the Indonesian steel producer’ effort to enter downstream business and to reduce the production costs, said the chief executive on Tuesday (01/15).
According to the CEO Silmy Karim, the first project is the Blast Furnace Complex in the area of ​​55 hectares joined with Capital Engineering & Research Incorporation Ltd., from China and its unit PT Krakatau Engineering (PTKE). He said, with the new plant, steel production costs will decrease by US$50 per ton.
“The Blast Furnace facility is a coal-based technology. So it will increase the flexibility of energy use and reduce dependence on natural gas, which is projected to experience an increasing price in the future,” said Karim.
In the Blast Furnace complex, KRAS has build Sinter Plant with a capacity 1.7 million tons per year, Hot Metal Treatment Plant with a capacity of 1.2 million tons per annum, and Coke Oven Plant with a capacity of 555 thousand tons in a year. As a support, there is a Raw Material Handling that can accommodate 400,000 tons per year.
Another project, an addition of hot sheet steel capacity to supply Hot Rolled Coil (HRC) with a capacity of 1.5 million tons per annum and is targeted to be complete in April 2019. Karim said, HRC managed to record a sales volume in November 2018 which amount 189,702 tons from previous month 127,005 tons.
Until September 2018 (9M), Krakatau Steel has a 40 percent of HRC market share of total national output. At the same period, steel maker’s sales recorded 1.59 million tons, up 14.24 percent compared to previous year 1.39 million tons.

The Southeast Asia’s largest economy, is expecting size-able demand for steel followed the development of infrastructure projects, shipbuilding and the automotive industry in the coming years.

Domestic steel consumption is expected to surge by between 6 per cent and 9 per cent this year from initially around 10 million tons a year, according the Indonesian Iron and Steel Industry Association.

At present, the country imports between 35 percent and 40 percent of the total annual demand for steel due to limited capacity in the local industry.

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