Bakrie will decide on steel plant in September

Bakrie will decide on steel plant in September

TOKYO (Reuter): PT Bakrie & Brothers president Tanri Abeng said yesterday that he expected to finalize a possible Indonesian steel plant project, likely to involve British Steel Plc, by September.

"I think we have to make some decision later, I would say towards the end of the third quarter. By September we should make a decision," he told Reuters.

Bakrie said earlier this month that the company was holding talks with possible venture partners, including British Steel, to build a steel plant in Lampung, South Sumatra.

Asked if British Steel will definitely be a partner in the project, Abeng said: "As far as British Steel and Bakrie, it's pretty much a sure relationship."

Abeng, who is in Tokyo to attend a conference, said the company was still evaluating or refining the feasibility study.

He also said it was still evaluating the site, whether it will be in Lampung, or in the Cilegon area. Assurances about electricity were needed for the Lampung site, he said.

Abeng added that British Steel and Bakrie intended to invite other partners as well, mentioning Japan's Kawasaki Steel Corp and Indonesian conglomerate the Lippo Group.

"What we may do is combine forces because we don't want to have excess capacity." he said.

"If you are too greedy, you can have problems. We prefer to be more accommodative and develop alliances rather than competition," he added.