Trans Pacific to revive Tuban olefins project<\/p>\n
SINGAPORE (Dow Jones): Indonesia's Trans Pacific Petrochemical
\nIndotama, the joint venture behind the stalled $2.3 billion
\nolefins project in Tuban, East Java, hopes to reach an agreement
\nwith interested investors by the end of March, and resume
\nconstruction sometime in the second quarter of 2000.<\/p>\n
According to a company official, who spoke to Dow Jones
\nNewswires Thursday, "there are some serious investors in the
\nproject, one of whom is Asian."<\/p>\n
"Once the new investors are in place, we'll make an
\nannouncement, which shouldn't be too far in the future," he
\nadded.<\/p>\n
Construction on the integrated olefins\/aromatics project was
\nhalted in late 1997 in the wake of the Asian financial crisis,
\nwhen the project was 45 percent complete.<\/p>\n
This was despite Tirtamas Majutama receiving a Rp 1.63
\ntrillion (US$226 million) bridging loan from local banks in July
\n1997 to keep the project afloat.<\/p>\n
According to the Indonesian Bank Restructuring Agency, only Rp
\n600 billion of the total loan was channeled to TPPI.<\/p>\n
TPPI is a joint venture between Indonesia's Tirtamas Group,
\nwhich holds 65 percent through subsidiaries Trans Pacific
\nPetrochemical and Tirtamas Majutama; Tuban Petrochemical, a Siam
\nCement PCL subsidiary, with 20 percent; and Japan's Itochu Corp.
\nand Nissho Iwai Corp., and Koch Industries Inc. of the U.S.,
\neach with 5 percent.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/trans-pacific-to-revive-tuban-olefins-project-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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