ERW # 2 Prime Production (14/10/2014)


PT KHI Pipe Industries as a subsidiary of PT Krakatau Steel (Persero), Tbk has successfully completed the construction of the 2nd Electric Resistance Welding (ERW) pipe production facility with a design capacity of 150,000 tons / year.

With the existence of the 2nd ERW factory, the previous production capacity of 118,000 tons per year became 233,000 tons per year and the ERW pipe diameter that PT KHI Pipe Industries could produce from 4 “- 20”.

President Director of PT KHI Pipe Industries Purwono Widodo, the expansion of ERW # 2 expansion was carried out to anticipate the potential for the ever-growing ERW market, especially in the oil and gas sector. In a press conference (Tuesday, 14/10), Purwono Widodo said “We are targeting the potential for the ERW pipe market, especially in the oil and gas sector, with a market opportunity for pipes with diameters of 14” -20 “, which currently can only be supplied by one pipe manufacturer,” The President Director of PT Krakatau Steel (Persero), Tbk said that the construction of the ERW # 2 production facility makes KHI a part of the Krakatau Steel Group development efforts. It is hoped that this expansion will affect the performance of the issuer coded as KRAS shares.

ERW # 2 Pipe Factory is built in an area of ​​7 hectares consisting of a factory building of 5 hectares and a storage area of ​​2 hectares, while the investment value of this project is IDR 335.6 billion. With the completion of ERW # 2, PT KHI Pipe Industries has become the most complete and integrated pipe manufacturer, as well as being the main outlet for the absorption of Krakatau Steel’s HRC products.






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