China’s Lesso to set up pipe plant in Indonesia

With the global demand for plastic pipes expected to grow in the coming five years and projected to reach 20.4 billion m by 2024, the Asia-Pacific region, especially the Southeast Asia region, has become the largest and most fast-growing markets for pipes worldwide.

Southeast Asia is now shifting fast from an agricultural economy to an industrial economy. Thus, its demand for plastic pipes has significantly grown due to the increased spending on infrastructure modernization projects, such as replacement of metal based pipes with plastic pipes in utility networks, expanding crop irrigation activities, rehabilitation of wastewater collection and water distribution, growing preference for no-dig technology, and etc.

With the aim of expanding its business, Chinese pipe maker Lesso has seen the potential in Southeast Asian market and is investing in the building of a large-scale pipeline manufacturing base in Samarang, Indonesia, to participate in the country's infrastructure advancement projects.

Indonesia has been claimed to be the largest economy in Southeast Asia and has growth perspective by many authorities like the World Bank. With the continuous and rapid development, Indonesia's domestic demand for infrastructure improvement has increased significantly. Pipes and pipe fittings which are common and essential construction materials, do have great opportunities during infrastructure construction in Indonesia.

Lesso's Indonesia manufacturing base will be able to supply plastic piping products and services for the domestic market as it specialises in a variety of advanced plastic piping solutions fitting for building construction, infrastructure, industrial and agricultural applications. Lesso's products are widely used in water supply, drainage, power supply, telecommunication, gas transmission, home decoration, and so on.

Lesso adds that it is also developing markets in more targeted countries in Asia, for example in Malaysia, Thailand, and Cambodia, adding momentum to its strategic business presence in the world.

Lesso Group Holdings Limited, founded in 1986, has been ensconced in the pipe industry and is gradually developing into a large industrial group of home furnishings and building materials in China. Its product portfolio spans piping systems, building materials, interior decoration products, environmental protection services, modern agriculture, channels and services, and more. With its rapid development, It has established over a 100 subsidiaries and 27 manufacturing bases in 18 provinces across China, and in North America.

It produces about 15% of the overall plastic pipe output in China and has surpassed its competitors a couple of times. According to a survey conducted by Forward Industry Research Institute, a professional industry planning consultant based in Beijing, China Lesso has been able to realise up to 2.78 million tonnes of design capacity since 2019 and achieved 2.397 million tonnes of sales in the same year.

In 2020, China Lesso is nominated by Hurun Research Institute on the list of Hurun China 500 Most Valuable Private Companies 2020 as its market value has reached a new record high of RMB37 billion with a year-on-year growth of 61%. Moreover, it's been on the Fortune 500 China list for 8 consecutive years since 2013 and the company stock is considered among those of the biggest value.

(PRA)

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