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KHI Pipe Industries completes ERW#2 pipe plant to tap demand from oil-gas sector

JAKARTA (Rambu Energy) – PT KHI Pipe Industries, an oil and gas pipeline producer owned by PT Krakatau Steel Tbk, on Tuesday announced the construction completion of its Electric Resistant Welding # (ERW) pipe.

The completion of the pipe production facility will boost KHI Pipe Industries capacity to 233,000 tons per year, from 115,000 tons per year previously.

KHI Pipe Industries President Director Purwono Widodo said the expansion of ERW#2 production facility is carried out to anticipate the growing demand for ERW pipe from oil and gas sector.

“The development of ERW#2 pipe production facility aims to tap the ERW pipe market demand, in particular fromo oil and gas sector,” Purwono said in a press statement. He said at present the pipe with diameter of 14”-20” is only supplied by one pipe producer.

President Director of PT Krakatau Steel Irvan K. Hakim noted the development of ERW #2 pipe production plant by KHI Pipe Industries is part of Krakatau Steel Group’s development program.

“We are thankful that PT KHI Pipe industries, as an experienced player that absorbs and creates value added to HRC steel plat produced by Krakatau Steel, has managed to produce the first ERW #2 pipe product,” Irvan K. Hakim said.

The ERW#2 production facility was developed on 7 hectares of land, which comprises of 5 hectares of plant and 2 hectares of storage area. The construction of the plant was financed by loan from Bank BRI and equity participation from PT Krakatau Steel Tbk and PT KHI.

The main machine to produce the ERW#2 pipe comes from Dalian Sage Ltd China, while other supporting facilities come from local suppliers or producers. (editorial@rambuenergy.com)

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