Budgeting Capex IDR 432 Billion, Sunindo Pratama Establishes Plant 2 Factory

PT Sunindo Pratama Tbk (SUNI) has started the construction of plant 2 of PT Rainbow Tubulars Manufacture (RTM) in Batam.

Continuing a series of strategies to increase the production capacity that had been running previously with transactions to increase paid-in capital to RTM amounting to Rp152.8 billion, the Company also budgeted capital expenditure (capex) of Rp432 billion which will be used for land purchases of Rp57 billion, factory construction of Rp250 billion and purchase of production machines of Rp125 billion. President Director of Sunindo Pratama (SUNI), Willy Johan Chandra said the construction of a new factory of 50,793 m2 could increase the production capacity of seamless pipes_/OCTG tubing to twice as much as 60,000 tons/year from the previous 30,000 tons/year.

"If it reaches its maximum capacity, the company can supply or serve the needs of seamless OCTG slashed up to 70,000 tons/year," Willy said in a statement to the media quoted on Saturday, March 16.

Willy said, this increase in production capacity supports the Company to diversify piped industrial products and expand its domestic and foreign market share (export market).

The company targets this facility to operate by 2025 and can make a positive contribution to the Company's operational and financial performance in the future.

Willy further said that the company hopes that the presence of a new SUNI factory can strengthen the local pipeline industry in meeting the needs of oil and gas exploration and exploitation in the future.

"The company is committed to supporting government programs that have set oil and gas lifting targets of 1 million BOPD and 12 BSCFD in 2030," he said.