JAKARTA (Indonesia Today) – PT Bakrie Pipe Industries, subsidiary of PT Bakrie and Brothers Tbk (BNBR) joins force with China Petroleum Pipeline Coating Engeneering Co Ltd to build pipe coating plant in Lampung.
Mas Wigrantoro, chief executive officer of Bakrie Pipe, said the project will cost US$15-25 million.
He said both parties will develop a joint venture (JV) within next 6 months after signing the join force on Thursday (Sept. 6).
Both parties have agreed to share the funding of the project where China Petroleum covers 51% of total funding.
Wigrantoro said the demand of coated pipe products is currently increasing, mainly in oil and gas sector in Asia Pacific, including Indonesia. (hans@theindonesiatoday.com)