Five potentials investors eye Krakatau Steelís blast furnace

17 May 2022 05:48

JAKARTA. At least five potential investors declare their interests in partaking as strategic partners in the renovation project of blast furnace of PT Krakatau Steel (Persero) Tbk, which has been suspended since 2019.

Silmy Karim, President Director of Krakatau Steel, mentioned that as of now, this blast furnace project has been offered to 10 potential strategic partners. However, only five of them returned the call. “Now, we’re entering preliminary due diligence,” he confimed yesterday (16/5).

Karim revealed that the plan is to sign Memorandum of Understanding with two future partners this May, followed by another three in July. “If the MoU is mutually agreed, we will proceed with due diligence,” he further added. Karim also mentioned that the cooperation scheme may take form in a joint venture (JV) or a joint operation.

The blast furnace of Krakatau Steel has been established since 2012, and started to commercially operate in 2019. Unfortunately, its activities were halted as it was deemed inefficient and suspected of being involved in corruption practices. (AM/ZH)

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