Production Facilities

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Krakatau Steel has 6 (six) production plants making the company as the only integrated steel plant in the country. These plants produce many kinds of downstream products from upstream raw materials.

Production processes of steel products in Krakatau Steel starts from Direct Reduction Plant. This plant processes iron ore pellets into irons using natural gas and water.

The irons are then fed into electric arc furnaces in Slab Steel Plant and Billet Steel Plant. In these furnaces, the irons are mixed with scrap, hot bricket iron, and other additional materials to produce two kinds of steels, namely slab steels and billet steels.

Slab steels are then reheated and rolled in Hot Strip Mill becoming hot rolled coils and plates. The outcomes of this mill are widely used for ship buildings, pipes, buildings, general structures, and other applications. Furthermore, hot rolled coils could be processed, re-rolled, and chemically treated in Cold Rolling Mill becoming cold rolled coils and sheets. The results are generally used to manufacture car bodies, cans, cooking wares, and other applications.

Billet steels are rolled in Wire Rod Mill to fabricate wire rods which are commonly used for piano wires, bolts and nuts, steel cords, springs, and other applications.

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This gas based direct reduction plant applies a Mexican origin HYL Technology. Today our direct reduction plant enjoys a support of two plant units, namely  HY I which started operation in 1979 and HYL III which began operation in 1994.
HYL I operates with  4-module batch process, each having 2 reactors with a production capacity of  1,000,000 tons of sponge iron per year.
HYL III operates using continuous process with 2 shaft reactors with a capacity of  1,350,000 tons of sponge iron per year.
HYL III has undergone an internal modifiction and is now capable of operating exceeding its original design, using the partial combustion.


The slab steel plant is equipped with 2 plants, namely SSP I (started operating in 1983) using German MAN GHH technology and boasts a production capacity of 1,000,000 tons per year and  SSP II (started operating in 1993) using Austrian Voest Alpine technolgy with a  production capacity of 2,400,000 tons per year.
The two plants have 6 electric furnaces (EAF) and 3 CCMs, along with a laddle furnace and  RH Vacuum degassing.


Started operating in 1979, the billet steel plant adopted German MAN GHH technology. The plant has a capacity of  675,000 tons per year.
That plant is backed up by  4 electric furnaces (EAF) and two four-strand  CCMs, with  Laddle Turret and Laddle Furnace.


Our hot strip mill began operating in 1983 using German SMS technology. Revitalization of the Hot Strip Mill completed in April 2011 and is currently working at full production capacity of 2,400,000 tons per year. The mill's production facility configuation is as follows : 

  • Two units of Reheating Furnace
  • One unit of Roughing Stand
  • Six units of Finishing Stand
  • Two units of  Down Coiler
  • Sizing Press.


This cold rolling mill became one of PT Krakatau Steel's production units in 1991. This mill is equipped with French CLECIM technology with current production capacity of 850,000 tons per year.
The cold rolling mill is equipped with the following production lines :

  • One CPL unit
  • One CTCM unit
  • One ECL unit
  • One CAL unit
  • One BAF unit
  • One TPM unit
  • One PRP unit
  • One REC unit
  • One SHR unit


The wire rod mill started operating in 1979 with a production capacity of 200,000 tons per year. The mill is supported by the following facilities :

  • One Reheating Furnace unit
  • One Roughing Mill unit
  • One Intermediate Stand unit
  • One  Finishing Strand unit

Mill modernization was undertaken in 1992 and 1995 to elevate production capacity to 300,000 tons per year. In 1999, the mill procured another strand, and with the existence of two strands plus additional facility modifiction, this mill is now capable of producing 450,000 tons of wire rods per year.