Jakarta-PT Krakatau Steel Tbk (KRAS) budgeted capital expenditure (capital expenditure / capex) in the range of USD400 million-USD450 million in the next year.

The funding will be used to build some strategic projects derived from the company and the external and internal.Sukandar Finance Director of KRAS explains, there are several projects that will continue in 2012. Among them, iron ore processing project of South Kalimantan, blast furnace and steel making facilities modernization, expansion of hot strip mill a mile and completion of construction of a joint venture with Posco.

"Projects is a carry over from 2011 capex," he said yesterday. He said the construction of blast furnaces still in the stage pematangan.Perseroan has received USD 450 million loan offer from a consortium of Shuma Bank.Target fundraising in February or March 2012.

High bertanur steel plant in the form of an EPC (engineering procurement contract) and performed by the contractor. Blast Furnace Factory plans to have 1.2 million tonnes of capacity development plans completed in the first quarter of 2014. Sukandar explains, the company revitalize facilities on direct reduction plant production (RDP) and slab steel plant that is targeted for completion in the first and third quarter of 2012.

While the iron ore processing project joint venture of South Kalimantan KRAS and PT Antam Tbk (ANTM), Rotary Klin installation has been completed and planned projects completed in the semester II/2012. For an integrated steel mill joint venture company PT Krakatau Posco, the maturation stage of the land. With the progress of development reached 65.4% which is targeted for completion in 2012.

Capital analysts Ertanto Price Deddy argued, commodity steel prices creeping up and the number of world steel demand as well as a fairly aggressive expansion by the company will give a positive impact on corporate performance in the future.

"The need for domestic and foreign steel and infrastructure development will be a positive effect on the company," he said.