Indonesia's biggest steel producer Krakatau Steel has announced that it has secured a $200 million syndicated loan facility for the construction of its blast furnace complex consisting of a blast furnace plant, sintering plant, coke oven plant, pig iron caster, material/hot metal handling facility and hot metal treatment plant.
The China Development Bank Corporation (CDB) and the Industrial and Commercial Bank of China Limited (ICBC) are providing $80 million each, while The Hongkong and Shanghai Banking Corporation Limited (HSBC) is contributing $40 million to the facility that matures in eight years.
The blast furnace complex with an annual capacity of 1.2 million mt of hot metal is expected to go into operation in 2014.
Meanwhile, the steelmaker will invest $400 million in a new hot strip mill in 2013 as part of its expansion plan, according to media reports.