Humpuss to establish $330m methanol plant<\/p>\n
JAKARTA (JP): A subsidiary of Humpuss Group yesterday assigned
\nLurgi Oil-Gas-Chemie Gmbh of Germany to construct a methanol
\nplant worth US$330 million in Bontang, East Kalimantan, with an
\nannual capacity of 660,000 tons.<\/p>\n
The project will be the first private methanol plant and the
\nsecond producer of such a downstream chemical product in
\nIndonesia after the first one established by the state oil
\ncompany Pertamina in 1983.<\/p>\n
Abdul Wahab, president of the Humpuss subsidiary, PT Kaltim
\nMethanol Industri (KMI), told reporters after signing the
\ncontract agreement with Lurgi that the construction of the
\nmethanol plant will begin later this year and will be completed
\nwithin 28 months.<\/p>\n
Wahab said the plant is expected to start production at the
\nbeginning of 1997.<\/p>\n
The construction of the plant, originally planned by KMI in
\ncooperation with a state-owned fertilizer company, PT Pupuk
\nKaltim, was delayed from its original schedule at the end of
\n1991, following the issuance of Presidential Decree No. 39\/1991,
\nwhich prevents state-owned companies or joint ventures involving
\nstate-owned companies from accruing large amounts of offshore
\nloans. Pupuk Kaltim then withdrew its participation in the
\nproject.<\/p>\n
KMI decided to resume the project by signing a memorandum of
\nunderstanding with IKB Deutsche Industriebank AG of Germany and
\nNissho Iwai Corporation of Japan on its financing on Sept. 16,
\n1993.<\/p>\n
Wahab said yesterday that 80 percent of the costs for the
\nproject's construction will be financed by an offshore loan from
\nIKB Deutsche Industriebank AG and Nissho Iwai Corporation and the
\nremaining 20 percent by his company's equity.<\/p>\n
He said the plant will be designed to produce 2,000 tons of
\nmethanol per day, or a total of 660,000 tons per year, assuming
\nthat there will be 330 working days a year.<\/p>\n
Sixty percent of the plant's production will be exported. The
\nremaining 40 percent will be sold domestically.<\/p>\n
Director General of Chemical Industries Sujata said the demand
\nfor methanol in Indonesia is 460,000 tons per year, while the
\nsupply from Pertamina is less than 330,000 tons. (02)<\/p>",
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