Tenaris SPIJ develops dopeless pipe

CILEGON, Banten: PT Seamless Pipe Indonesia Jaya (Tenaris SPIJ) invests US$30 million for dopeless pipe development that is claimed to be safer for gas and oil operation. Dopeless technology provides dry-pipe connection without the need for lubricants that is beneficial for operating efficiency and the environment. Such technology also provides corrosion protection during storage. President Director Lucio Costarrosa stated global Tenaris produces 6 million tons per year seamless pipe with production facilities in 16 countries. The company has plants in Batam and Cilegon with 140,000 ton per year production capacity with domestic and Asia as the targeted markets. Our plant utilization is only 30% due to the entry of imported products from China. We export 30% from our total production. Domestic industry, he continued, severely impaired by the emergence of unfair competition following the entry of Chinese products that are sold cheaper but with lower quality. Such condition leads to decline in market share by 20% per year in the last 2 years. Of course this affects the national industry. We are in need of government protection. To date, Tenaris SPIJ gets green pipe, its raw material, from Argentina, Italy, Japan and China. Nevertheless, he continued, value of local content reaches 40% including pipe enrichment and finishing process. Indonesia will become the first dopeless-tech factory in Asia. We will start in November. (t05/wiw)

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