Asahi to build RI plant

Asahi to build RI plant

TOKYO (Reuters): Mitsubishi Corp and Asahi Chemical Industry Co Ltd said yesterday that they would build a $240 million plant in Indonesia to produce ammonia.

The ammonia plant is expected to have a production capacity of 500,000 tons per year, spokesmen for the companies said. The plant will be operated by PT Kaltim Parna Industri, a unit of the Indonesian Kaltim group.

PT Kaltim Parna Industri's capitalization will be boosted to about $50 million, leaving Mitsubishi Corp with a 55 percent stake in the firm, while Asahi Chemical Industry will take 10 percent and the rest will be held by Indonesian firms.

The ammonia will be used to make basic materials for synthetic fibres, the Asahi Chemical spokesman said.

Of the total 500,000 tons of ammonia to be produced at the plant, about 100,000 to 150,000 tons will be exported to Japan and 300,000 tons will be exported to other parts of Asia, including China, the spokesmen said.