JAKARTA: PT Krakatau Steel Tbk eyes US$400 million-US$500 million loan facility from China-based Export Credit Agency to finance the construction of blast furnace plant in Cilegon, Banten.Krakatau Steels Director of Finance Sukandar stated the company is currently processing the facility and will ask for shareholders approval through GMS in Monday.The facility will come from Export Credit Agency as the winner of engineering, procurement, and construction (EPC) tender for project is from China. Moreover, the tenor is quite long that is 2 years and can be extended to 8 years.The loaning plan has been stated to Bapepam-LK last month.Related to company development, the company has no plan to issue bond or to seek for other financing. The company, he continued, still has strong internal cash and the proceeds of its IPO.Increase capacityBased on Bisnis data, the loan will be used to add up the fund to construct blast furnace plant in Cilegon with a capacity of 1.5 million ton per year worth IDR4.8 trillion. The construction is scheduled to finish in 2013.Throughout 2010, the KRAS-coded share booked IDR1.06 trillion net profit or skyrocket 114.83% while revenue decreased 12.18% to IDR14.85 trillion.Awhile ago, President Director Fazwar Bujang stated the less than bright performance in the first quarter of 2011 was due to smaller production volume that led to slow sales. The narrower production was amid hot strip mill plant revitalization that could work maximally in March 2011.Krakatau Steel plans to increase hot rolled coils production to 2 million ton this year from 1.8 million ton in 2010. Cold rolled coils also projected to increase to 450.000 ton from 400.000 ton last year. (t05/msw)

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