Peni to increase capacity in 1997<\/p>\n
JAKARTA (JP): PT Peni, one of two producers of polyethylene in
\nIndonesia, has signed here an agreement with Technip and Japan
\nGas Corporation (JGC) to increase its capacity from 250,000 tons
\nat present to 550,000 tons by the end of 1997.<\/p>\n
The company's marketing Development Manager, Budi Susanto,
\nsaid here yesterday that total investment for the expansion is
\nestimated at about US$200 million.<\/p>\n
He said that based on the agreement--called Alliance
\nCommitment--Technip will be responsible for detailed engineering
\nand procurement, JGC for construction and PT Peni for
\ncommissioning.<\/p>\n
Peni's President Jim Hay said that Peni will play a key role
\nin servicing the polyethylene market in Indonesia. \"We've been
\nfinalizing details for this latest expansion for some time and
\nthe project is now underway,\" he said.<\/p>\n
PT Peni, Indonesia's first and biggest producer of
\npolyethylene, which is used as a raw material in the production
\nof plastic goods, came on stream in February 1993 with a capacity
\nof 200,000 tons. In 1994, it increased its capacity to 250,000
\ntons with BP Chemicals chromium catalysis technology.<\/p>\n
Its shareholders are BP Chemicals (51 percent), Mitsui & Co
\nLtd (12.5 percent), Sumitomo Corporation (12.5 percent), Sigit
\nHarjojudanto (9 percent) and PT Arsero Petrokimia (15 percent).<\/p>\n
The other producer of polyethylene in the country is Chandra
\nAsri, which also produces ethylene -- needed to make polyester.
\n(13)<\/p>",
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"sponsor": "Okusi Associates",
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