Firms to cooperate on petrochemical project<\/p>\n
TOKYO (Dow Jones): Nissho Iwai Corp, Itochu Corp, an
\nIndonesian firm and a Thai firm will put up a combined US$1
\nmillion every four months to cover plant maintenance costs at an
\nIndonesian petrochemical complex project in East Java, the Nihon
\nKeizai Shimbun (Nikkei) reported in its Sunday morning edition.<\/p>\n
Construction at the complex was suspended due to the country's
\neconomic crisis. Each of the four companies will contribute
\naccording to their stake in the project.<\/p>\n
The four companies are waiting for the right time to restart
\nconstruction, while keeping an eye on the economic recovery. They
\nwill also look for new firms to replace the Indonesian firm,
\nwhich is financially weak, the Nikkei report said.<\/p>\n
The Tirtamas group holds a 70 percent stake in the project,
\nwhile Siam Cement Public Co. holds a 20 percent stake. Nissho
\nIwai and Itochu, both of Japan, each holds a 5 percent stake.<\/p>\n
The original plan was to spend $3 billion (about Y360 billion)
\nto produce about 700,000 metric tons of ethylene a year as well
\nas other petrochemical products.<\/p>\n
Construction was halted, however, after about 40 percent was
\ncompleted, when the economic downturn struck the region in 1997.<\/p>\n
The four companies originally put up some $500 million to pay
\nfor plant construction and maintenance as well as labor costs for
\nsome 200 hundred employees. This capital has run out, forcing the
\ncompanies to boost the project's capital, the report said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/firms-to-cooperate-on-petrochemical-project-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}