UIC's olefin unit to start production later this year<\/p>\n
JAKARTA (JP): The publicly-listed PT Unggul Indah Corporation
\n(UIC), the country's sole alkylbenzene producer, said yesterday
\nthat it will complete the construction of its PACOL (paraffin
\nconvert to olefin) unit in October.<\/p>\n
\"The operation of the $60 million PACOL unit, which has a
\nproduction capacity of 120,000 tons per annum, will enable us to
\nproduce linear alkylbenzene at more competitive prices since
\nnormal paraffin is cheaper than olefin,\" said UIC president
\nHartono Gunawan.<\/p>\n
Normal paraffin is a substitute raw material for alpha and
\nnormal olefin in the production of linear alkylbenzene.<\/p>\n
Gunawan, who was elected president last year replacing
\nJohannes Kotjo, said that the use of paraffin as raw material
\nwill enable the company to reduce its production costs by 10
\npercent.<\/p>\n
\"Paraffin is now sold at only US$400 per ton compared to
\nolefin which is sold at $700,\" Gunawan said.<\/p>\n
\"It also means that we will enter the upstream petrochemical
\nindustry,\" he added.<\/p>\n
The PACOL unit, which is being constructed by Samsung
\nEngineering of South Korea, will use the processing technology
\nfrom Universal Oil Process, a U.S.-Japan joint venture company,
\nunder a licensing agreement signed in 1994.<\/p>\n
UIC, according to Gunawan, will also begin the construction of
\nits third alkylbenzene production plant this year. The company is
\nnow operating two alkylbenzene plants in Cilegon, West Java, with
\na combined production capacity of 150,000 tons per annum.<\/p>\n
\"The new plant is expected to start commercial production
\nlater next year and will increase our total capacity by 40
\npercent to 210,000 tons per annum,\" Gunawan added.<\/p>\n
The construction of the PACOL unit and the new alkylbenzene
\nplant, according to Gunawan, is partially financed by $120
\nmillion in syndicated loans raised by the company last August.<\/p>\n
Gunawan also said that the company booked a 12 percent
\nincrease in its total consolidated net sales to Rp 317 billion
\nlast year over 1994.<\/p>\n
\"It was attributable to higher sales of linear alkylbenzene
\n(which was up by 7 percent), branch alkylbenzene (8 percent) and
\nsodium tripoly phosphate (24 percent),\" he said.<\/p>\n
\"Our net profit, however, rose be only 7 percent to Rp 32
\nbillion due to a change in accounting standards,\" he added.<\/p>\n
UIC's shareholders yesterday approved the management's
\nproposal to pay Rp 150 per share dividend for the 1995 book year,
\ntotaling Rp 21.7 billion or 65 percent of the company's net
\nprofit. (08)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/uics-olefin-unit-to-start-production-later-this-year-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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