Posted on 21 Jan 2015
State-controlled steel maker PT Krakatau Steel Tbk is in the final stage of securing $250 million in loan from German credit insurer Euler Hermes, Investor Daily reported, quoting CEO Irvan K Hamid.
Hamid added he expects to sign the loan agreement soon. The firm will use the fund to develop a new hot strip mill. Construction of the facility will start this year and operation is expected to start in the second half of 2017. The firm has signed an agreement with a consortium of SMS Siemag AG and PT Krakatau Engineering in July 2014 to develop the factory worth up to $409.9 million.
