China Lesso Invests US$60 Million in Large-scale Pipeline Production Base in Indonesia
The move is aimed at capitalizing on China’s Belt and Road Initiative and at globalizing business
HONG KONG, CHINA – Media OutReach – 10 September 2019 – China Lesso Group Holdings Limited (“China Lesso” or the “Group”, HKEx stock code: 2128), a leading large-scale industrial group making building materials and interior decoration products in mainland China, is pleased to announce its plan for overseas expansion. The Group invests US$60 million in a large-scale pipeline production base in Indonesia to increase its competitiveness and business presence in Southeast Asia. The move represents the Group’s effort to capitalize on China’s Belt and Road Initiative and to step up the globalization of its business.
The Group is constructing its own production base in Indonesia which will be equipped with a number of advanced, automated production lines for pipelines and pipe fittings. The plan will be carried out in two phases. The first phase of the project will have designed annual production capacity of approximately 60,000 tons and will supply its products to Indonesia and its neighbouring countries in Southeast Asia and other countries in North America in the next five years. The entire production base is estimated to have annual production capacity of 100,000 tons.
Before the completion of its own production base, the Group rents a local factory in Indonesia to produce plastic pipes and fittings on a small scale with an annual output of about 4,000 tons, starting from November this year.
Mr. Wong Luen Hei, Chairman and Executive Director of the Group, said, “As the largest economy in Southeast Asia with a population of nearly 300 million, Indonesia is one of the main drivers of economic growth in the region. It is also a major Southeast Asian country that participates in China’s Belt and Road Initiative. Indonesia is a market with huge potential. Therefore, we are building a large-scale pipeline production base in the country with the aim of tapping its huge domestic demand and grasping the opportunities presented by its infrastructure development. This is an important strategic move in China Lesso’s plan for globalizing its business. In the future, the Group will continue to proactively develop its business in other Asian countries, including India, Vietnam and Thailand. This will add impetus to the Group’s overseas expansion.”