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Krakatau Steel to restructure subsidiaries to become agile

Steel News - Published on Tue, 23 Apr 2019

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Tempo reported that Indonesia’s state owned steel producer PT Krakatau Steel plans to restructure its corporate organization and a number of subsidiaries for the next three months and that it would consolidate subsidiaries having similar business lines. Corporate president director Mr Silmy Karim said his firm is under pressure due to the rampant circulation of imported steel in Indonesia since 2014. Thus, he opined, the corporate must be realistic, and so cutting down the non-productive business. Mr Silmy targeted to complete the restructuring this year. He added that “In a bid to actualize the fit, agile, and fast company. Besides, it will support the main and supporting business as to strengthen the company’s value in the future adding that he would allocate the firm’s resources to back high margin business.”

According to him, the government must encourage and strengthen the national steel industry through cross ministries and institutions. Otherwise, the implementation of industry 4.0 toward the steel industry would be fruitless.

Throughout 2018, Krakatau Steel recorded a net income hike by 20.05% YoY at USD 1.73 billion. This was in line with the increase in sales volume at 12.84% or 2.14 million tonnes, compared to the previous year’s 1.90 million tonnes. Meanwhile, the deficit amounted to USD 74.82 million, lower than the previous year’s USD 81.74 million.

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Posted By : Sanju Moirangthem on Tue, 23 Apr 2019
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