PT. KHI Pipe Industry PT. Krakatau Wajatama PT. Krakatau Engineering PT. Pelat Timah Nusantara PT. Krakatau Information Technology PT. Krakatau Tirta Industri PT. Krakatau Bandar Samudra PT. Krakatau National Resources PT. Meratus Jaya Iron & Steel
PT Krakatau Steel (Persero) Tbk (Krakatau Steel Company Limited) is the largest steel maker in Indonesia, headquartered in Cilegon, Banten.[1] The factory is set on a 280-hectare (700-acre) plot in the western end of Banten and adjacent to the Sunda Strait, and where the Krakatoa volcano and island from which the company takes its name are located.
It is a state-owned enterprise[2] which is engaged in steel production. The company, which operates in Cilegon, Banten, was originally formed as a manifestation of the Trikora Steel Project, which was initiated by President Sukarno in 1960 to have a steel plant capable of supporting the development of an independent, high value-added national industry and influencing national economic development. When it was formed on May 20, 1962, the company, which was formerly called the Cilegon Steel Mill, was officially established in cooperation with a Soviet all-union foreign trade organization. However, the occurrence of severe political and economic turmoil, resulting in factory construction had stopped. It was only before entering the early 1970s, the factory unit resumed construction and officially operated on August 31, 1970 under the name Krakatau Steel. During the company's first decade of existence, Krakatau Steel has made rapid moves in the construction of an integrated steel production operation area in Cilegon with various inaugural operational inaugurations that were witnessed and inaugurated directly by President Soeharto from the integrated water treatment center, Cigading port, Cilegon 400 MW power plant and steel plant integrated covering 4 main steel products.
History
Long before the idea of the national steel industry emerged, the forerunner to the processing of iron ore had been born since 1861. At that time, the colonial government of the Dutch East Indies built a furnace in Lampung. The Blast Furnace construction in Lampung functions to process the results of coal ore mining coal. Even though it is small in size, the processing industry is capable of producing crude steel that serves to make parts for sugar factories, rubber factories, and agricultural equipment. However, the iron ore processing industry is closed due to unprofessional management.
During the occupation of Japan, a furnace was built in South Kalimantan with coal fuel. However, the number of turbulent wars and physical revolution resulted in the pioneering of the steel industry had stopped. It was only in 1956 that the steel industry began to receive attention by reinforcing the idea of establishing a national steel industry. The Minister of Industry and Mining, Chaerul Saleh together with Djuanda from the State Design Bureau (now Bappenas), began to draw up a blueprint for the national steel industry. Indonesia, which is actively undertaking development, needs the presence of an iron ore processing industry. The State Design Bureau cooperated with the West German consulting agency WEDEXRO (West German Ingeniur Bureau) of Walter Rohland[3] to pioneer the steel industry called the "Trikora Steel Project".
After the feasibility study was completed, Cilegon was chosen as a place for processing and production of iron ore processed products because it has advantages such as large land that does not convert agricultural land, there are abundant water sources, affordable access from various islands to bring scrap metal through the port of Merak. The signing of development contract with a Soviet all-union foreign trade organization (the company claimed that the organization's name was "Tjazpromexport", or "All Union Export-Import Corporation") on June 7, 1960 continued with the laying of the first stone on May 20, 1962. Once again, the construction was halted again due to political turmoils resulted by the 30 September Movement. After a vacuum of five years, the Trikora Steel Project was continued through Government Regulation of the Republic of Indonesia Number 35, August 31, 1970 with the establishment of PT Krakatau Steel (Persero). The establishment of Krakatau Steel was validated by Tan Thong Kie Notary Deed Number 34, on October 23, 1971 in Jakarta.
Since then, Krakatau Steel has begun to catch up by accelerating the development of the integrated steel industry in Indonesia. The progress and hard work can be seen from a series of inauguration of factory units and supporting facilities. In 1977, the inauguration of President Suharto was inaugurated by a number of factories such as the Concrete Iron factory, the Profiling Iron factory and the Cigading Port. Two years later, officially the construction of the Sponge Iron factory, the Steel Billet plant, the Wire Rod factory, the 400 MW Steam Power Plant, the water treatment center and PT KHI Pipe were completed and fully operational. In 1983 the construction of the Steel Slab factory, the Hot Sheet Steel factory and the Sponge Iron factory were completed and officially operated. Until 1993, there was still the inauguration of expansion and modernization.
Production facilities
Krakatau Steel has six production plants, making the company as the only integrated steel plant in the country. These plants produce many kinds of downstream products from upstream raw materials.
Production processes of steel products in Krakatau Steel starts from a direct reduction plant. This plant processes iron ore pellets into iron using natural gas and water.
The irons are then fed into electric arc furnaces in the slab steel plant and the billet steel plant. In these furnaces, the irons are mixed with scrap, hot briquetted iron, and other additional materials to produce two kinds of steels, namely slab steels and billet steels.
Slab steels are then reheated and rolled in a hot strip mill, becoming hot rolled coils and plates. The outcomes of this mill are widely used for shipbuilding, pipes, buildings, general structures, and other applications. Furthermore, hot rolled coils could be processed, re-rolled, and chemically treated in a cold rolling nill becoming cold rolled coils and sheets. The results are generally used to manufacture car bodies, cans, cooking wares, and other applications.
Billet steels are rolled in a wire rod mill to fabricate wire rods which are commonly used for piano wires, bolts and nuts, steel cords, springs, and other applications.[4]
Latest, PT Krakatau Nippon Steel Sumikin (KNSS) started operating its galvanized steel plant in Cilegon, Banten, in September 2017. KNSS, established in 2012, is a joint venture between NSSMC and state-owned steel maker PT Krakatau Steel to manufacture and market cold-rolled steel and hot-dipped galvanized steel products for Indonesia's automotive industry.
In addition to its subsidiaries, Krakatau Steel also has several joint ventures or affiliations, such as:
On November 10, 2010, in the midst of turbulent market conditions, PT Krakatau Steel (Persero) managed to become a publicly listed company by carrying out an initial public offering (IPO) and listing its shares on the Indonesian Stock Exchange. In 2011, PT Krakatau Steel (Persero) Tbk posted a net income of Rp17.9trillion and net profit of Rp1.02trillion. In 2011, the company and its subsidiaries with assets worth Rp21.5trillion had 8,023 employees.
On November 26, 2014, Krakatau Steel inaugurated the second steel pipe factory owned by its subsidiary PT KHI Pipe Industry in Cilegon, Banten. With the operation of this new plant, PT KHI will become the largest steel pipe producer in Indonesia, the factory is focused on making steel pipes for the oil and gas industry.
Subholding Krakatau Sarana Infrastruktur (KSI)
Krakatau Sarana Infrastruktur, a subholding company which officially established on June 30, 2021. Krakatau Sarana Infrastruktur is a subsidiary of Krakatau Steel which consists of PT Krakatau Industrial Estate Cilegon (PT KIEC), PT Krakatau Tirta Industri (PT KTI), PT Krakatau Daya Listrik (PT KDL), and PT Krakatau Bandar Samudera (PT KBS). Krakatau Sarana Infrastruktur is the first fully vertically integrated industrial service holding in Indonesia with four main business areas consisting of industrial estate, industrial water supply, energy needs, and ports.[citation needed]
Related Research Articles
A steel mill or steelworks is an industrial plant for the manufacture of steel. It may be an integrated steel works carrying out all steps of steelmaking from smelting iron ore to rolled product, but may also be a plant where steel semi-finished casting products are made from molten pig iron or from scrap.
Cilegon is a major coastal industrial city in Banten province, Indonesia, covering 162.51 km2 (62.75 sq mi). It is located on the island of Java. The city had a population of 374,464 at the 2010 Census and 434,896 at the 2020 Census; the official estimate as at mid 2023 was 450,507 - comprising 228,360 males and 222,150 females.
ArcelorMittal Kryvyi Rih is Ukraine's largest integrated steel company, founded in 1934 and located in Kryvyi Rih, in central Ukraine.
Companhia Siderúrgica Nacional (CSN) lit.'National Siderurgy Company' or 'National Steel Company' is the largest fully integrated steel producer in Brazil and one of the largest in Latin America in terms of crude steel production. Its main plant is located in the city of Volta Redonda, in the state of Rio de Janeiro. Its current CEO is Benjamin Steinbruch.
IISCO Steel Plant of Steel Authority of India Limited is an integrated steel plant located at Burnpur, a neighbourhood in Asansol city, in the Asansol subdivision of Paschim Bardhaman district, West Bengal, India.
JFE Steel is the second largest Japanese steel manufacturer. The company was created in 2002 through the merger of the steel manufacturing business of Kawasaki Steel and NKK. It is owned by JFE Holdings, which is listed on the Tokyo Stock Exchange.
Kaiser Steel was a steel company and integrated steel mill near Fontana, California. Industrialist Henry J. Kaiser founded the company on December 1, 1941, and workers fired up the plant's first blast furnace, named "Bess No. 1" after Kaiser's wife, on December 30, 1942. Then in August 1943, the plant would produce its first steel plate for the Pacific Coast shipbuilding industry amid World War II.
The Park Gate Iron and Steel Company was a British company that smelted iron ore and turned it into rolled steel and semi-finished casting products. Its works was at Parkgate, South Yorkshire on a triangular site bounded on two sides by the main road between Rotherham and Barnsley (A633) and the North Midland Railway main line between Rotherham Masborough and Cudworth. It also operated ironstone quarries in Northamptonshire and Leicestershire.
Mobarakeh Steel Company is a private Iranian steel company, located 65 km south west of Esfahan, near the city of Mobarakeh, Esfahan Province, Iran. It is the largest steel maker of MENA region, and one of the largest industrial complexes operating in Iran. It was commissioned after the Iranian Revolution in 1979 and initiated operations during 1993. It underwent major revamping during year 2000, and is scheduled for a second and third revamping in 2009–2010, bringing the total steel output to 7,200,000 metric tons per year. The company owns the successful football club, Sepahan. In 2022, a parliamentary report indicated corruption of $3 billion, leading to the company being suspended from the Tehran stock exchange.
McLouth Steel is a former integrated steel company. The company was once the ninth-largest steelmaker in the United States.
Ebbw Vale Steelworks was an integrated steel mill located in Ebbw Vale, South Wales. Developed from 1790, by the late 1930s it had become the largest steel mill in Europe. It was nationalised after World War II. As the steel industry changed to bulk handling, iron and steel making was ceased in the 1970s, and the site was redeveloped as a specialised tinplate works. It was closed by Corus in 2002, but is being redeveloped in a joint partnership between Blaenau Gwent Council and the Welsh Government.
PT Semen Padang is the state-owned company that became oldest cement plant in Indonesia, having been founded in 1910.
The Iron and Steel Industry in Scunthorpe was established in the mid 19th century, following the discovery and exploitation of middle Lias ironstone east of Scunthorpe, Lincolnshire, England.
PT Kimia Farma Tbk is an Indonesian pharmaceutical producer and distributor in Indonesia. It is based in Jakarta.
In 2022, the United States was the world’s third-largest producer of raw steel, and the sixth-largest producer of pig iron. The industry produced 29million metric tons of pig iron and 88million tons of steel. Most iron and steel in the United States is now made from iron and steel scrap, rather than iron ore. The United States is also a major importer of iron and steel, as well as iron and steel products.
Beloretsk steelmaking plant, abbreviated as BMK, is the steel company in Russia. It is located in the city of Beloretsk, in Bashkortostan.
PT Kawasan Industri Jababeka Tbk, trading as Jababeka & Co., is the first publicly listed industrial estate developer in Indonesia, being listed on the Jakarta and Surabaya Stock Exchange under the "KJIA" ticker symbol in 1994. It was established in 1989 by Setyono Djuandi Darmono, marked by the development of an integrated city in some 5,600 hectares of land which is Kota Jababeka in Cikarang. As an industrial estate developer, Jababeka creates an industry-based township through developing industrial, residential, commercial property, leisure, infrastructure and estate management service.
Tanjung Lesung Beach is a beach in Pandeglang Regency, Banten, western tip of Java. It is 160 kilometres (99 mi) from the capital city of Indonesia, Jakarta, and can be reached by car or public bus in about a 3-4-hour drive. It is known as a beach resort with sea views, having a 15-kilometre (9.3 mi) white sand coastline and also marine life where visitors can enjoy snorkeling, diving as well as fishing. The area has been declared as a "cultural heritage" since the location is near Ujung Kulon National Park, Mount Krakatau and Umang Island.
Iron and steel industry in Nigeria developed as a public funded integral industry. Between 1979 and 1983, Nigeria government jump started iron and steel production with emphasis on the importance of iron and steel in developing and driving local production of goods. A strong iron and steel industry was also projected to reduce demand of foreign currency used towards the importation of steel products.
PT Aneka Tambang Tbk, colloquially known as Antam, is an Indonesian mining company. The company primarily produces gold and nickel, and is the largest producer of nickel in Indonesia. Until 2017, Antam was a directly state-owned company, before its ownership was transferred to PT Mineral Industri Indonesia (Persero) or MIND ID, a government-owned holding company.
This page is based on this Wikipedia article Text is available under the CC BY-SA 4.0 license; additional terms may apply. Images, videos and audio are available under their respective licenses.
USD166,7 million (tahun 2020)
