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[www.ferro-alloys.com]After several delays, state steel maker Krakatau Steel (KS) has finally scheduled the groundbreaking of a US$400 million hot strip mill in Cilegon, Banten, for August.

KS president director Sukandar said the mill would add 1.5 million tons to its current 3.15 million ton annual steel production.

"The groundbreaking will be conducted in August and [construction] is expected to be completed in 2019," he told reporters before a meeting with lawmakers in Jakarta on Monday.

Sukandar further said the mill construction would be financed with a $260 million loan from Commerzbank AG, with support from the German Export Credit Agency (ECA), and $106 million internal equity, among others.

The firm expects to sell more steel although the steel price has dropped, causing company losses of $62.8 million as of March this year.

"The steel price has dropped by 40 to 50 percent from the price in 2008. However, our sales volume still increased by 32 percent as of March," he said.

**Article from Internet for reference only

• [Editor:tianyawei]