Araya Industrial to Launch Indonesia Steel Pipe Plant

Osaka based steel pipe maker, Araya Industrial announced on Tuesday the firm and Hanwa Co. launches Indonesian joint venture in August to make carbon and stainless steel welded pipe for around 1.15 billion yen. The joint venture starts operation in August 2013 targeting monthly 1,000 tonnes of production in 3 years. The new production base is to follow growing demand for automobile.

The joint venture, PT. Araya Steel Tube Indonesia with around 810 million yen of capital is located in industrial park in Bekasi, West Java. Araya Industrial controls 90% of the joint venture with 10% share by Hanwa.

The venture builds new plant with around 4,500 square meters of floor space on around 30,000 square meters of land. The firm starts operation with one 2 inches electric resistance welding line and one high speed cutting machine.

The plant makers various grades of products including STKM, STK, STKMR, SUS304TKC, SUS304TKCR and special shapes. The firm supplies products with 19.1-60.5 millimeters and 1-4 mm thick.

The joint venture is the first pipe plant in Indonesia for Araya Industrial while the firm operates bicycle rim business in Tangerang in Indonesia since 1976. Araya Industrial tries to meet growing demand from transplants of Japanese automobile industry and local buyers.