Citra Group moves into the iron smelting<\/p>\n
JAKARTA (JP): The Citra Group, controlled by President
\nSoeharto's eldest daughter, Siti Hardiyanti Rukmana, has moved
\ninto the pig iron industry through its subsidiary PT Citra
\nIndustri Logam Mesin Persada.<\/p>\n
Siti Hardiyanti said that her group's entrance into the pig
\niron industry is aimed at strengthening the competitiveness of
\nIndonesia's industries in the world market and reducing the
\ncountry's dependence on imports.<\/p>\n
Bambang Soeroso, president of Citra Industri Logam, said that
\nthe company's US$33.7 million iron smelting plant in Cilegon,
\nWest Java, which is scheduled to come on stream next October,
\nwill save US$26 million per annum which would otherwise be spent
\non pig iron imports.<\/p>\n
The plant, construction of which began last month, will have
\nan annual production capacity of between 75,000 tons and 85,000
\ntons of pig iron.<\/p>\n
Bambang said Indonesia currently consumes some 300,000 tons of
\npig iron annually, most of which is imported.<\/p>\n
Pig iron is used as raw material in the steel industry and for
\nthe production of automotive components, such as engine
\ncylinders, engine blocks and cogwheels.<\/p>\n
The company is 82 percent owned by PT Citra Lamtoro Gung
\nPersada, 10 percent by the Tiara Indonesia Foundation and 7.5
\npercent by the pension fund of state-owned PT Krakatau Steel.<\/p>\n
Bambang gave assurances that his company will not seek
\ngovernment protection against imports.<\/p>\n
He said he is confident that his company's products will be
\nable to compete, in terms of both quality and price, with
\nimported pig iron on the local market.<\/p>\n
Imported pig iron currently sells for Rp 600,000 per ton. \"We
\nare ready to sell our products at Rp 550,000 per ton, \" Bambang
\nwas quoted by the Republika daily as saying yesterday. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/citra-group-moves-into-the-iron-smelting-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}