Amoco Mitsui to expand PTA capacity in Indonesia

JAKARTA (JP): PT Amoco Mitsui PTA Indonesia, a Japanese- American joint venture, has started the construction of a purified terephthalic acid (PTA) plant in Merak of West Java with a production capacity of 350,000 tons per year.

Amoco Corporation of the United States, the world's largest producer of PTA, will hold 50 percent interest in the joint venture, Mitsui Petrochemical Industries Ltd. of Japan 45 percent and Mitsui & Co. of Japan the other five percent.

The joint venture, which received an investment approval from the government in April, said in a statement yesterday that the plant will use Amoco's proprietary technology to produce PTA, the preferred raw material for making polyester fiber, film and container resin.

The joint venture expects that the bulk of its production will be sold to the rapidly expanding polyester market. Production is projected to start in July 1997.

"Expansion of our PTA manufacturing capacity is consistent with our long term strategy to keep pace with the strong growth predicted for polyester products," James E. Fligg, executive vice president of Amoco Corporation, was quoted by the statement as saying. "Indonesia represents one of the largest growth markets in the region which is itself the world leader for polyester manufacturing."

Located 85 miles west of Jakarta, the Merak site was chosen to efficiently serve existing Indonesian polyester producers.

The statement said that the joint venture has assigned PT Chiyoda International Indonesia as contractor for the plant's construction. (31)