Posted on 22 May 2015
“We will add more steel plants catering to the oil and gas sector in Cilegon in Banten and in Cepu in Central Java,” said CEO Mas Wirgantoro Roes Setiyadi. “We also plan to move a factory from Bekasi in Java to Cilegon and we will run a coating plant project.”
The company will also build a coating plant in Lampung, in southern Sumatra, where it operates a steel pipe plant. BMI subsidiary Bakrie Pipe Industries will run the coating plant, which is expected to help boost the company’s exports.
BMI targets to export 9,000 tons of steel pipe this year.
Bakrie Pipe operates two steel pipe plants in Lampung and in Bekasi, on the eastern outskirts of Jakarta, with combined capacity of 350,000 tons a year. The company produced 153,000 tons of steel pipe last year, 10,000 tons of which were exported.
Bakrie Pipe’s sales declined by 60 percent to 12,000 tons in the first quarter this year from the same period last year, with the company citing the slow pace of expansion in oil and gas projects.
Indonesia’s overall steel production capacity is 14 million tons a year; domestic consumption amounts to 12.7 million tons of steel, according to data from the Industry Ministry.
BMI is a subsidiary of Bakrie & Brothers, a listed investment firm affiliated with prominent politician Aburizal Bakrie.
