Semen Indonesia (Persero) Tbk PT : KRAKATAU STEEL WITH SEMEN INDONESIA FOUNDED JOINT VENTURE COMPANY SLAG POWDER FACTORY WITH INVESTMENT RP 440 M

Jakarta, December 20, 2013 - PT Krakatau Steel (Persero) Tbk and PT Semen Indonesia (Persero) Tbk today signed an agreement forming a joint venture (Joint Venture Company) is engaged in the production of Slag Powder which will process the granulated Blast Furnace Slag (GBFS) becomes Ground granulated Blast Furnace Slag (GGBFS) with the name of PT Krakatau Semen Indonesia. The agreement was signed by the President Director of Semen Indonesia Dwi Soetjipto and President Director of Krakatau Steel Irvan K. Hakim in the office of PT Krakatau Steel (Persero) Tbk Jakarta. Cooperation formation of this joint venture is a form of synergy between state-owned enterprises in developing the business.readmore...

President Director of PT Krakatau Steel said, this cooperation can increase revenue and contribute to the reduction of CO2 emissions and secure supply of raw materials (granulated blast furnace slag) for the purposes of the cement industry." Slag Powder Factory is designed capable of processing granulated Blast Furnace Slag (GBFS) amounted to 750,000 tons per year, plant construction planned to commence early in 2014 and is targeted to be operational early in 2016, " said Irvan.

Furthermore, Irvan explain, within a period of slag powder plant construction period, the joint venture company will be trading or selling to a third party (on the supply of PT Krakatau Posco GBFS namely : 350,000 tons / year ).

President Director of Semen Indonesia Dwi Soetjipto said, " The joint venture company PT Krakatau Semen Indonesia was established with a total investment of Rp 440 M located inTegal Ratu village, District Ciwandan, Cilegon, Banten province, Indonesia where the project was set up on an area of ??40,000 M2. "

Dwi Soetjipto added, it welcomed the cooperation with PT Krakatau Steel, in order to realize synergies between SOEs. He explained that, slag powder produced by the joint venture will be used by PT Semen Indonesia to produce composite portland cement.

" Raw materials Krakatau Semen Indonesia derived from blast furnace slag granulation products Krakatau Posco and Krakatau, then processed into granulated Blast Furnace Slag Ground (GGBFS) as cement raw material or other designation " said Dwi Soetjipto.

The total investment in the joint venture project reached USD 440 billion and working capital of Rp 24 billion. The EPC includes IDC funding using borrowed funds and equity with composition of 70% : 30 %. The portion of the loan funds amounting to Rp 308 billion and equity fund of Rp 132 billion.

Plant construction projects PT Krakatau Semen Indonesia will be built in self-managed and employ domestic labor, and the use of contractors and sub-contractors or other companies that provide services within the country. The Company shall determine, including, but not limited to price and top quality machinery, materials, equipment and qualified contractors, subcontractors and personnel based on terms and conditions apply. In addition to the establishment of Slag Powder Factory, the scope of this project will also build internal access road and other supporting facilities.

Company Overview in the JVA

PT Krakatau Steel (Persero Tbk is a state-owned company engaged in the steel industry. Currently PTKS be the only integrated steel company in Indonesia with a production capacity of up to 3.15 roling million tons per year. PT KS is the ruler of the largest domestic steel market with the acquisition of 41 % for HRC products. As for CRC products 27 % market share. PT KS has 11 subsidiaries consisting of a variety of business sectors, such as manufacturing, providers of raw materials, energy, water, industry, port, industrial estate, information technology, and health.

PT Semen Indonesia (Persero) Tbk is a Holding Company of Semen Padang, Semen Gresik, Semen Tonasa and Thang Long Cement Vietnam with an installed capacity of 30 million tons of cement per year with a domestic market share of 44 percent. Cement Mill Company has 22 units, 21 units packing plant. Currently the company also has a dedicated port 11 is in Padang, Tuban, Gresik, Biringkasi, Dumai, Ciwandan, Banyuwangi, Sorong and two ports in Vietnam.

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