Texmaco to start producing PTA next February<\/p>\n
JAKARTA (JP): The publicly-listed PT Polysindo Eka Perkasa
\nwill start producing purified terephthalic acid (PTA) in February
\nat its industrial complex in Karawang, West Java.<\/p>\n
The company's president M. Sinivasan said over the weekend
\nthat the plant would produce around 340,000 tons of PTA a year.<\/p>\n
He said when the plant is fully operational the company will
\nno longer need to buy the chemical material to feed its polymer
\nplant.<\/p>\n
\"Currently we have to buy PTA from Bakrie's chemical plant,\"
\nhe said, adding that his company's PTA production would account
\nfor about one third of the country's total capacity.<\/p>\n
Bakrie Group produces around 500,000 tons per year.<\/p>\n
He said Polysindo, which together with its publicly-listed
\nsubsidiary Texmaco Jaya, also produces textile machinery,
\ngarments, synthetic fibers and fabric, would use all of its PTA
\nproduction at its polymer plant.<\/p>\n
\"Our polymer plant has been in operation since September with
\na designed capacity of 330,400 tons per year,\"Sinivasan said.<\/p>\n
The polymer plant feeds Polysindo's polyester staple fiber
\nfactory which also has been expanded to an annual capacity of of
\n180,000 tons per year since September.<\/p>\n
Sinivasan said the sharp increase in the cotton price on the
\ninternational market had prompted many Indonesian textile
\nproducers to substitute cotton with polyester staple fiber as raw
\nmaterial.<\/p>\n
Indonesia's total production of more than one million tons of
\nPTA is able to meet only 56 percent of total domestic PTA demand
\nwith the remainder having to be imported.<\/p>\n
He said the local demand for PTA was projected to increase by
\nbetween 15 percent and 20 percent per year over the next five
\nyears, making a capacity expansion at his PTA plant commercially
\nviable within the near future.<\/p>\n
He said the establishment of the plants -- PTA, polymer and
\nstaple fiber -- would take an investment of US$575 million.<\/p>\n
\"It is part of our expansion programs until the year 1998 with
\na total investment of about US$2 billion,\" he said. He did not
\nelaborate on the source of funds.<\/p>\n
Texmaco will also begin producing trucks in the first semester
\nof 1998. \"We've got a license for making chassis from Leyland of
\nBritain and for engines from Cummins Engine Co. Inc. of the
\nU.S.,\" he said.<\/p>\n
He said his company would also obtain soon a license for the
\nmanufacture of axles from Eaton Co. of the U.S. and for
\ntransmission from ZETF of Germany.<\/p>\n
The engines will be used initially to power medium-size and
\nheavy-duty trucks to be produced by Heavyndo, a subsidiary of the
\nTexmaco Group.<\/p>\n
Sinivasan said the expansion program also included
\npartnerships with a number of small companies to produce garments
\nbeginning in March.<\/p>\n
The company is also reportedly setting up a rayon fiber plant
\nin Irian Jaya.<\/p>\n
When all the expansion programs are completed in 1998, the
\ncompany expects to see its net sales increase to about $1
\nbillion, of which about 20 percent will be net profit, said
\nSinivasan. (bnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/texmaco-to-start-producing-pta-next-february-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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