Krakatau Steel was established on August 31, 1970 as a result of Indonesian Government Regulation No. 35 in the year 1970 regarding is equity establishment.
The establishment of this steel industry was started by utilizing the left over machinery of the former Russian initiated Trikora Steel Project, mainly on cold wire drawing, bar mill, and section mill.
These plants were officially opened by the President of Republic Indonesia in 1977.
In 1979, the operation of the facilities such as direct reduction plant (with the capacity of 1.5 million tons per annum), billet steel plant (with the capacity of 500,000 tons per annum), wire rod mill (with the capacity of 220,000 tons per annum) and infrastructure such as a steam power plant (400MW), water purifying installation, port of Cigading and telecommunications system were officially opened.
In 1983 relatively large scale plants also formally started their operation, they are slab steel plant and hot strip mill.
This was followed in 1991 by a merger of a cold rolling mill plant in Cilegon industrial zone, to become the production unit of Krakatau Steel.
Today, Krakatau Steel is the largest integrated steel producer in Southeast Asia. The company is also a producer of sheet steel hot (HRC) and cold steel sheet (CRC), the largest in Indonesia, each with a domestic market share of 47% and 33%, and manufacturer of steel wire rods, the second largest in Indonesia, with 32% domestic market share. In terms of product specifictions, Krakatau Steel controlled about 85% of the total product absorbed by the domestic market.
The company has a combined maximum steel capacity of 2.45 million tons per year. Importing raw materials including iron ore from countries in South America and the Middle East. Krakatau Steel sells most of its products in Indonesia especially in Jakarta and Surabaya. Meanwhile, a fraction of its product has been con- sumed, among others, by Australia, Japan, Malaysia, Singapore, England and Vietnam.