Monday, June 5, 2023

Spindo to prepare IDR 250 billion of Capex for 2023 toward machine procurement

Reading Time: < 1 minute
Intelligence Author

Journalist

yan

Editor

Interview

PT Steel Pipe Industry of Indonesia Tbk (Spindo) has prepared IDR 250 billion of Capex for 2023 for machine procurement and machine rejuvenation to reach its sales target of 500,000 by 2025.

Founded in 1971, Spindo is a steel pipe manufacturer which has the largest production capacity in Indonesia and is vastly experienced in producing a wide range of steel pipes/tubes and other related products.

Procurement and machine rejuvenation

Spindo Corporate Secretary & Investor Relations, Johannes W. Edward, explained that the Capex is planned to be used towards buying new machines, rejuvenating existing machines, and building warehouses

“For the 2023 Capex, we will start building warehouses for new machines and there will also be rejuvenation of machines in various units. The Capex is around IDR 150 billion to IDR 250 billion. Later, we will adjust it quarterly, but the target is more or less like that,” Edward explained during a Virtual Public Expose on December 6, 2022.

Previously, until the third quarter of 2022, the company recorded a net profit of IDR 293 billion, a decrease of 34,3% compared to the same period in 2021 which reached IDR 445 billion.

Positive projection

The global steel pipes and tubes market was valued at US$ 142.4 billion in 2019 and is predicted to increase at a compound annual growth rate (CAGR) of 6.2% from 2020 to 2027. One of the major growth factors for the market is the increasing oil and gas production due to demand from transportation industry.

The rising manufacturing of electric vehicles in Indonesia might have a positive impact on steel pipes and tubes industry in the future, as the demand increases as well for the electric vehicle manufacturing needs.

Intelligence Author

Journalist

yan

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

PT Hyundai Energy Indonesia held a groundbreaking ceremony for its electric vehicle assembly plant located in the Greenland International Industrial Center (GIIC) in Cikarang Bekasi Regency on Wednesday (31/5). Hyundai Energy aims to produce 21,000 units of battery system assembly (BSA) per year.
BUMI has recently receive a new partner from China for the development of downstreaming its coal products, specifically in the ammonia sector.
Blue Bird turned its attention to Chinese EV manufacturer BYD to provide electric cars. Previously, the taxi company sourced its electric cars from Tesla.
Investment totaling IDR 134.7 trillion will be directed towards the production of electric vehicle (EV) batteries within the country.
Indonesia’s largest nickel sulfate factory, operated by PT Halmahera Persada Lygend, has been officially inaugurated. The company aims to begin nickel sulfate export in June 2023.
The Indonesian Government will increase its share ownership in Freeport as the company divest another 20% of its shares in exchange for permit extension.