Asahi to join in ammonia project<\/p>\n
JAKARTA (JP): Asahi Chemical Co. Ltd. of Japan will join PT
\nKaltim Parna Industri, a joint venture between two Indonesian
\ncompanies and Mitsubishi Corporation, to build a US$240 million
\nammonia plant in Bontang, East Kalimantan.<\/p>\n
The company's chief commissioner Marihad Simbolon said Asahi
\nChemical had bought 10 percent of Mitsubishi's stake in PT Kaltim
\nParna Industri to take part in the joint venture company.<\/p>\n
The acquisition, which will be formally signed today, would
\nchange the share ownership in PT Kaltim Parna Industri, with
\nMitsubishi Corp. holding 55 percent instead of its previous 65
\npercent stake.<\/p>\n
Asahi Chemical would hold 10 percent while local partners PT
\nParna Raya would own 25 percent and PT Pupuk Kaltim's Pension
\nFund the remaining 10 percent.<\/p>\n
\"Under the joint venture agreement, Asahi Chemical will be the
\nmain customer of the plant's product, by importing around 30
\npercent of the production per year,\" Marihad said.<\/p>\n
The plant, which is scheduled for commercial operation by the
\nmiddle of 2000, will have an annual production capacity of around
\n500,000 metric tons.<\/p>\n
Marihad said that the company's Japanese shareholders,
\nMitsubishi Corporation and Asahi Chemical, would provide loans of
\nup to 80 percent of the total investment to finance the project,
\nwhile the remain 20 percent would be taken from the shareholders'
\nequity.<\/p>\n
Kaltim Parna Industri's president Naohiko Munakata said that
\nthe plant had a bright future, given a continued increase in the
\ndemand of ammonia products in Indonesia and other Southeast Asian
\ncountries.<\/p>\n
Nurhadi B. Santoso, the company's production director said
\nthat local demand for ammonia had reached around 100,000 metric
\ntons per year, and was expected to increase to around 300,000
\nmetric tons per year by 2000 due to operation of new downstream
\nchemical industries producing fertilizers, synthetic fibers and
\nammonium nitrate.<\/p>\n
The ammonia will be used to make basic materials for synthetic
\nfibers, he added.<\/p>\n
He said the company planned to export at least 75 percent of
\nits product, around 350,000 metric tons, to Japan, Thailand, the
\nPhilippines, China and other Asian countries, while the remaining
\n25 percent would supply local markets.<\/p>\n
Asked why the Japanese firms chose to invest in Indonesia in
\nthe current unfavorable economic condition, Munakata said that
\nthe companies had made a long study in making the decision, and
\nthey believed that their investment would yield a good return
\nover the long term.<\/p>\n
\"It's going to be a very long-term investment, but the
\ncurrency crisis is a temporary condition. We believe it will be a
\ngreat investment for the future,\" he said.<\/p>\n
PT Parna Raya, established 25 years ago, focuses in shipping,
\nfreighting, land transportation and trading.<\/p>\n
Its partner Mitsubishi Corporation, one of the largest
\ncompanies in the world, has a widely-diversified business in
\nmanufacturing, distributing, and the trading of production and
\nservices.<\/p>\n
Its other partner, Asahi Chemical Co. Ltd., is one of the
\nlargest chemical companies in Japan. Asahi Chemical is currently
\ndeveloping several downstream industries for ammonia in Japan and
\nother Asian countries. (08)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asahi-to-join-in-ammonia-project-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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