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An agreement for the supply of a minimum of 12,500 and a maximum of 15,000 tonnes per month was signed between the two companies on Monday January 19, Krakatau Steel said in a statement posted this week on its website.
Essar Indonesia will re-roll the HRC into cold rolled coil at its plant in Bekasi, West Java.
The first phase of the contract will last one year, Krakatau Steel noted.
Essar Indonesia ceo Datta Tembhekar told Steel First via email that prior to the deal, the company already sourced its HRC from Krakatau Steel, in addition to imports from Japan and South Korea.
“Now we have entered into [this] supply agreement with Krakatau Steel for a maximum of 180,000 tonnes and we will continue sourcing from our existing suppliers as we are doing now,” he noted.
A subsidiary of India’s Essar Steel, Essar Indonesia has an installed cold rolling capacity of 400,000 tpy.
It also has a 150,000-tpy galvanizing line and a service centre able to handle 200,000 tpy of both full-hard and annealed CRC, galvanized coils and sheets, and coated flat steel, among other products.
Indonesia’s state-owned steelmaker Krakatau Steel will supply as much as 180,000 tonnes of re-rolling-grade hot rolled coil to Essar Indonesia over the next twelve months.