INDONESIAN KRAKATAU STEEL SEEKING COOPERATION WITH RUSSIAN PARTNER

London, Oct 27 (ANTARA) - President Director of state-owned steel company PT Krakatau Steel Fazwar Bujang paid a two-day visit to Russia's biggest steel company Severtal to explore a business cooperation with the company, an Indonesian diplomat said.

Besides holding talks with the Russian steel company executives, the PT Krakatau Steel's president director and entourage also made a field observation tour of the private steel firm, Information Counselor of the Indonesian Embassy in Moscow, M. Aji Surya, told ANTARA here on Sunday.
Severtal is the biggest steel company in Russia which has steel investment companies in the United States and Italy with a combined production capacity of 18 million tons per annum.
Fazwar Bujang said that PT Krakatau Steel had historical ties with the Russian private steel company which had experience during the early development of Indonesian steel company.
"Our meeting produced positive results and they agreed to follow up our talks," Fazwar Bujang said adding that Severtal at present was concentrating on internal development as a result of the decline in demand as a result of the global financial crisis.
Indeed, all steel companies in the world, including PT Kratatu Steel, are experiencing declining demand due to the world financial meltdown.
Yet, the government hoped that PT Krakatau Steel could continue its plan to develop its infrastructure so that it would boost the growth of demotic economy.
"Besides, control over the entry into the country of illegal steel products must be tightened," he said.