KHI Pipe expands production capacity

Pipe maker PT KHI Pipe Industries, a subsidiary of IDX-listed steel manufacturer PT Krakatau Steel Tbk, has completed the construction of its second production facility of electric resistant welding (ERW) pipe, increasing total production capacity to 233,000 tons per year, reports said on Wedneday.

KHI Pipe President Director Purwono Widodo was quoted as saying that the expansion was made to anticipate rising demand for the pipes particularly from the oil and gas sector.

He said that KHI Pipe was eying specifically the market potential of the 14-20 inches diameter pipe products, which had been supplied by a single producer. (*)