PT KHI Pipe Industries (KHI) closes 2020 by completing the delivery of McConnell Dowell Constructors (Aust) Pty Ltd.’s HMAS Coonawara project.
KHI supplies piles pipe with the specification BS EN 10219 S355JO which will be used for jetty construction at HMAS Coonawarra, an Australian Navy Base located in the city of Darwin, Northern Territory. Producing pipes with dimensions and thicknesses that are at the maximum engine capacity limit is one of our proud successes. The project with a total value of $ 3.8 million was successfully completed by KHI on time, with the first deliveries taking place last November.
The performance of KHI itself even though in the midst of the difficult conditions of the COVID-19 pandemic, is predicted still be able to record a positive profit for almost USD 7.7 million by the end of 2020, increased 129% to the same period last year. Earning Before Interest, Taxes, Depreciation And Amortization (EBITDA) of the Company increased 152% and EBITDA margin which strengthened significantly more than 151% from the same period last year. This performance improvement is supported by the existence of a Cost Efficiency Program in each line so that “Tolling Costs” are reduced by up to 23%.
President Director of KHI Utomo Nugroho said that in 2020, KHI was able to record good and healthy performance by continuing to focus on increasing sales and company performance. This achievement cannot be separated from good teamwork and communication, as well as support from Krakatau Steel as the parent company. “2020 is a tough year for the company, but we will continue to do our best and consolidate both internally and externally, especially PT Krakatau Steel as the parent company.”
Furthermore, Utomo added that he hopes that KHI can continue to grow and develop into a steel pipe manufacturer that is integrated and calculated in the region. “The Company continues to make efforts to improve both in terms of finance and operations so that 2020 can be said to be the year to strengthen the “foundation” in moving forward to the coming years. Some of the strategies we have implemented and will be implementing include the Product Downstreaming Program, Increasing Machine Capacity and Expanding Marketing Channels in collaboration with the Company’s strategic partners.”