Steel Pipe Industry (ISSP) to Invest Rp400 Billion in 2026 for Expansion

Strategic Investment for Capacity Enhancement

PT Steel Pipe Industry of Indonesia Tbk (ISSP), also known as Spindo, is planning a significant capital expenditure of approximately Rp400 billion in 2026. The majority of this budget will be directed towards completing the seventh production unit (Unit 7) expansion project located in Gresik, East Java. According to Johanes W. Edward, Chief Strategy & Business Development Officer and Corporate Secretary & Investor Relation at Spindo, about Rp300 billion will be allocated specifically for this expansion project.

Technological Advancements in Production

The expansion project involves the installation of two advanced Electric Resistance Welded (ERW) machines. These machines will enable the production of steel pipes with diameters up to 8 inches and 24 inches, enhancing the company's product range and production capacity. The phased operationalization of Unit 7 is expected to commence in 2026, marking a significant milestone in ISSP's growth strategy.

Market Implications and Future Prospects

This strategic investment demonstrates ISSP's commitment to meeting the growing demand in the steel pipe industry. By expanding its production capacity and incorporating advanced technology, the company is well-positioned to strengthen its market position and capitalize on emerging opportunities in both domestic and international markets.