Krakatau Steel to Double Stake in Indo Japan Steel
Elizabeth Gloria Brahmana
Krakatau Steel is planning to double its stake in Indo Japan Steel Center to 20 percent by purchasing shares of Adyawinsa Dinamika and Dwijaya Sentosa Abadi, a Krakatau Steel executive said.
“I cannot yet divulge the final value of the transaction but what is clear, with a 20 percent stake, we will have one director slot and we are eying the finance director slot,” Wayan Hernawan, expert staff to the Krakatau Steel marketing director said.
Indo Japan Steel Center is a producer of special steel for the automotive industry and is based in Karawang, West Java. Adyawinsa, Dwijaya and Nippon Steel Trading Co. Ltd each have a 30 percent stake.
Wawan said Adyawinsa and Dwijaya were willing to sell their shares to Krakatau Steel and Nippon Steel. After the transaction, Nippon Steel will have 80 percent of the shares and Krakatau Steel 20 percent.
After the transaction the board of directors will also be changed from two directors and one deputy, to three directors — the president director, the financial, marketing and human resources director and the production director — he said.
“Our aim in getting into Indo Steel is to develop steel production of the domestic automotive industry. So far, the steel supply of the automotive industry is mostly imported from Japan,” Wawan said.
He said Indo Steel hoped to be able to provide part of the national automotive industry’s steel needs. It will build a special steel plant with a production capacity of 120,000 tons per year in Karawang, West Java, with an investment of Rp 100 billion.
Krakatau Steel president director Irvan Kamal Hakim said the company will seek to safeguard steel supply for Indo Steel.
“For the purchase of the Indo Steel shares we are still awaiting news from our other shareholders because the shares are not only offered to Krakatau Steel,” he said.
The Krakatau Steel annual general shareholders meeting on Thursday agreed to pay a cash dividend of Rp 15 per share or a total of Rp 238.99 billion for the 2011 year. The amount accounts for 23.36 percent of the net profit of Rp 1.02 trillion in 2011.
“The dividends will be paid out on July 24, 2012. The remaining net profit of Rp 728.85 billion will become retained revenue and also used for the PKBL program,” Irvan said, referring to the company’s Environmental Guidance Work Program.
The meeting also approved changes in the boards of directors and commissioners.
Irvan replaces Fazwar Bujang, Hilman Hasyim becomes production director, Sukandar is the financial director, Dadang Danusiri is the human resources and general affairs director, Imam Purwanto is the director for logistics, Yerry is the marketing director and Widodo Setiadarmadji is the technology business development director.
The president commissioner is Zacky Anwar Makarim, while Ignatius Rusdonobanu and Tubagus Farich Nahril are the commissioners. Mohamad Imron Zubaidi and Ahmad Sofjan Ruky are the independent commissioners.