The Ministry of Commerce, Industry and Energy has contracted with the KIER including the ceramics company to localize of the ceramic heat exchanger tubes and its components. The basic objective of this paper is to develop a ceramic formulation and process which would yield a cost-effective and long-life Si/SiC tube materials by extrusion and reaction sintering process. Thus,KIER is currently developed and localized heat exchanger tubes with 40mm out diameter, 1500mm length. This paper was tested the mechanical and thermal properties of the localized Si/SiC tubes obtained from reaction sintering. Also, the effect of energy savings of the heat exchanger after exposure to forging furnace with hot corrosive environment was investigated.