Lately overseas concentrates markets are deserted, and the price has dropped to only about USD 10 per ton. That is why we are no longer able to export as much, and as a result the company was forced to lay-off most employees,Kotabaru, South Kalimantan (AntaranewsKalsel) - The steel industryl PT Sebuku Iron Ores (SILO) in the district of Kotabaru expects the government protection to ensure that finished products from outside do not go into Indonesia.
Operations Manager of PT SILO Henry Yulianto here on Tuesday said, in addition not to let finished goods to enter Indonesia, the government can also protect the domestic steel companies no longer import raw materials or sponge iron, a case of current conditions.
"Lately overseas concentrates markets are deserted, and the price has dropped to only about USD 10 per ton. That is why we are no longer able to export as much, and as a result the company was forced to lay-off most employees," he said.
Seeing these conditions, he added, the company could not silent and should accelerate the development of manufacturing industry of concentrate into sponge iron.
Initially, said Henry, PT SILO setting up investment for concentrate and sponge iron industry up to USD 340 millions. However, as market conditions even lethargic, then there was a new policy.
The company reduced the investment fund from USD 340 million to 170 million, while waiting for market conditions to improve. Currently, the company is preparing the foundation of sponge iron industry which is a continuation of the development of an existing concentrate.
"If the equipments come and will be immediately installed, it should only take about 4-5 months then we'll be able to produce sponge iron ," he said.
Along with the introduction of the Asean Economic Community (AEC), foreign goods freely enter Indonesia or vice versa, then the government should be able to provide protection for the production of sponge iron in the country to meet domestic needs.
Today, the steel industry in Indonesia is still importing sponge iron as steel raw materials from abroad. If the PT SILO managed to build sponge iron industry, the raw material requirements of PT Krakatau Steel can be met and does not need to import from abroad.
"Therefore, the government protection is of necessary, so foreign goods, in the form of finished goods or sponge iron should not go to Indonesia," he said.
edited by mahdani
Pewarta: Imam HanafiEditor : Mahdani
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