Krakatau Steel sells 14,000 tons of steel to national ship builder

The Jakarta Post, Jakarta | Mon, 12/22/2008 5:34 PM  

State-owned steel company PT Krakatau Steel has agreed to supply 14,000 tons of steel to state-owned ship builder PT PAL for the construction of two ships, Antara news agency reported Monday. 

The supply agreement was signed in Jakarta on Monday at the State Enterprises Ministry. 

PAL President Director Harsusanto said the company has received an order from Germany to build two 50,000 deadweight tons (DWT) ships to be completed next year. 

He, however, did not reveal the value of the steel procurement agreement. The price of steel is still fluctuating in the market; Antara recorded steel had been traded at US$600 per ton on Monday. 

Harsusanto said PAL had pending orders to construct 16 ships, ranging form 22,000 to 50,000 DWT, to be completed by the end of 2012. He said each ship would require between 7,000 and 8,000 tons of steel. 

Separately,  Krakatau Steel Marketing Director Irvan Hakim said the company was ready to allocate 25,000 tons of steel, out of an annual production of 360,000, for PAL contracts. 

"Our cooperation with PAL has been running for a long time and the company will continue to be a strategic partner for us," he said. (dre)