KHI Pipe to export 25% of its production<\/p>\n
JAKARTA (JP): Steel pipe producers PT KHI Pipe Industries, a
\nsubsidiary of the state-owned steel producer PT Krakatau Steel,
\nwill export at least 25 percent of its production capacity this
\nyear due to a sluggish demand in the domestic market.<\/p>\n
The company's president, Sabungan Hutapea, said Tuesday that
\nin past years the company only allocated 10 percent of its output
\nfor exports and focused its production on meeting domestic
\ndemand.<\/p>\n
\"We will boost our exports in order to comply with a
\ngovernment suggestion to boost foreign exchange earnings and also
\nto anticipate the decline in domestic demand due to the
\npostponement of many projects,\" he said following the launching
\nof the company's first bulk of its US$1 million spiral pipe
\nexports to Australia, India and Singapore.<\/p>\n
Sabungan said the pipes would be used in irrigation systems in
\nAustralia, a high-pressure gas pipelines project in India and
\nscaffolding in Singapore.<\/p>\n
He said the company planned to increase its annual production
\ncapacity from 160,000 tons at present to 200,000 tons later this
\nyear.<\/p>\n
KHI exported water pipes to Sudan in 1994, and scaffolding
\npipes to Japan and high pressure gas pipes to Pakistan in 1995.<\/p>\n
He said the company was not able to export its pipe products
\nin 1996 and 1997 due to its involvement in building a 550-
\nkilometer gas pipeline linking Asamera in South Sumatra and Duri
\nin Riau.<\/p>\n
The company's pipes were used in a $74 million pipeline
\nproject owned by state gas company Perusahaan Gas Negara (PGN).<\/p>\n
Sabungan said that KHI would participate in a tender for a
\n280-km pipeline project owned by PGN in Sumatra.<\/p>\n
KHI's finance director, Anwar Ibrahim, said the company's
\nexport revenue was expected to increase in line with its
\nincreasing export volume.<\/p>\n
\"Our profit is expected to increase by 5 percent to 10 percent
\nthis year from Rp 6 billion last year,\" he said.<\/p>\n
Sabungan said the company's profit increase was very realistic
\nbecause the company has sufficient local raw materials and does
\nnot need to import.<\/p>\n
He said KHI's raw materials have been supplied by PT Krakatau
\nSteel at normal prices, which have not been affected by the
\nmonetary crisis.<\/p>\n
In past years, the company supplied 70 percent of its products
\nto local mining, oil and gas companies, 20 percent was allocated
\nto supply local industrial sectors and irrigation systems, and
\nthe remaining 10 percent was exported. (gis\/msa)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/khi-pipe-to-export-25-of-its-production-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}