Krakatau Steel applies restructuring program to save steel business

Krakatau Steel applies restructuring program to save steel business

Krakatau Steel (ANTARA News)

I urge all our subsidiaries to work together to save our steel business.
Jakarta (ANTARA) - State-owned steel manufacturer PT Krakatau Steel is applying a restructuring program in a bid to regain profit and improve its financial performance, Silmy Karim, the company's president director, stated.

The fundamental changes to rescue the company involve optimizing its subsidiaries through a comprehensive restructuring program that encompasses organizational, human resource, and debt restructuring, he noted in a written statement released on Thursday

"I urge all our subsidiaries to work together to save our steel business. Hence, to solve the problem, we need to prioritize the spirit of mutual help and togetherness among all sides," he emphasized.

The company's restructuring steps to save its business cover selling non-core assets, streamlining organizational structure, seeking strategic business partners, conducting spin-off, and transforming cost center working units into profit center ones, he explained.

He did admit that the restructuring and transformation programs might not bode well with all sides, but the company's management has made assurance that the programs will be conducted in line with the law.

Karim is optimistic that the restructuring program would help make Krakatau Steel more aggressive in developing its business and market in future.

Moreover, Krakatau Steel is a national steel manufacturer having strategic aspects for the development of the national economy and a backbone of industrial and infrastructural development being boosted in the country.

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