Amoco Mitsui to expand PTA capacity in Indonesia

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)