Citra Group moves into the iron smelting

Citra Group moves into the iron smelting

JAKARTA (JP): The Citra Group, controlled by President
Soeharto's eldest daughter, Siti Hardiyanti Rukmana, has moved
into the pig iron industry through its subsidiary PT Citra
Industri Logam Mesin Persada.

Siti Hardiyanti said that her group's entrance into the pig
iron industry is aimed at strengthening the competitiveness of
Indonesia's industries in the world market and reducing the
country's dependence on imports.

Bambang Soeroso, president of Citra Industri Logam, said that
the company's US$33.7 million iron smelting plant in Cilegon,
West Java, which is scheduled to come on stream next October,
will save US$26 million per annum which would otherwise be spent
on pig iron imports.

The plant, construction of which began last month, will have
an annual production capacity of between 75,000 tons and 85,000
tons of pig iron.

Bambang said Indonesia currently consumes some 300,000 tons of
pig iron annually, most of which is imported.

Pig iron is used as raw material in the steel industry and for
the production of automotive components, such as engine
cylinders, engine blocks and cogwheels.

The company is 82 percent owned by PT Citra Lamtoro Gung
Persada, 10 percent by the Tiara Indonesia Foundation and 7.5
percent by the pension fund of state-owned PT Krakatau Steel.

Bambang gave assurances that his company will not seek
government protection against imports.

He said he is confident that his company's products will be
able to compete, in terms of both quality and price, with
imported pig iron on the local market.

Imported pig iron currently sells for Rp 600,000 per ton. "We
are ready to sell our products at Rp 550,000 per ton, " Bambang
was quoted by the Republika daily as saying yesterday. (rid)