PT Inerco Global International has entered into a strategic partnership with PT Artas Energi Petrogas to establish Southeast Asia’s first seamless pipe manufacturing facility in Cilegon, Banten. The collaboration, consolidated in a deal worth Rp 5 trillion (approximately USD 325 million), will see the plant located within the Krakatau Steel Industry Complex.
The agreement is between Indonesian seamless pipe producer PT Artas Energi Petrogas, which has an annual production capacity of 250,000 tons, and PT Inerco Global International, a well-established steel pipe supplier.
The agreement, signed by PT Inerco Global International CEO Hendrik Kawilarang Luntungan and PT Artas Energi Petrogas CEO Jose Antonio Reyes, aims to meet the growing demand for seamless steel pipes in Indonesia’s oil and gas sector.
Indonesia imports steel pipes worth Rp 15 trillion (USD 974 million) every year, and the new plant is expected to reduce this significant expense and help the country save foreign exchange. The project is in line with Indonesian President Joko Widodo's vision to transform Indonesia into an industrialized country by promoting domestic value addition.
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