BISNIS.COM, CILEGON – PT KHI Pipe Industries, a subsidiary of PT Krakatau Steel Tbk, is expanding the steel pipe factory with a total investment of IDR335.6 billion.
President Director of Krakatau Steel, Irvan Kamal Hakim, said that the second steel pipe factory which will be located on an area of 25 hectares will focus on producing electric resistant welding (ERW) steel pipes with a diameter of 10 inches to 20 inches.
“The effective production capacity of this second factory will reach 115,000 tons per year,” he said on the sidelines of the groundbreaking of the factory expansion, Tuesday (21/5/2013).
However, this second plant is designed with an installed production capacity of 150,000 tons per year. For the supply of main engines, Krakatau Steel is working with Sage Company Dalian from China, while the building is being done by PT Krakatau Engineering.
Irvan hopes that through the construction of this second factory, KHI’s performance can improve, because steel pipes of 10 inches to 12 inches currently dominate the market by 68%.
Not only that, Irvan measured, amid the sluggishness of the steel industry, factory expansion could boost the company’s steel sales volume, namely hot rolled coil (HRC) to 130,000 tons for the production of steel pipes.