Bakrie, China?s firm will build pipe factory

PT Bakrie Pipe Industries will team up with China Petroleum Pipeline Coating Engineering Co Ltd (CPPCE) to build and operate a pipe coating factory in the company?s steel pipe plant in South Lampung, Kontan reported on Friday.

Bakrie Pipe?s Chief Executive Officer Mas Wigyantoro said in Jakarta on Thursday that the new factory would be built to meet the surge in the demand of steel pipes from the country?s oil and gas industry.

He said that the demand which is expected to rise by 12 percent this year would continue to increase in the coming years due to an increase in exploration and production activities in oil and gas sector.

Mas Wig said that Bakrie and CPPCE, a subsidiary of China National Petroleum Corporation (CNPC) would discuss the possibility of establishing a joint venture after the signing of a memorandum of understanding (MoU) agreement.

He hoped the joint venture could be established to build and operate the new pipe factory within the next six months. (*)