Chandra Asri's expansion

Chandra Asri's expansion

TOKYO (AFP): Japan's Marubeni Corp. and Showa Denko KK are considering plans to boost output by some 20 percent in an Indonesian ethylene venture, a spokesman said yesterday.

The plan to increase annual ethylene output capacity to 675,000 tons by mid-1996 from the initially planned 550,000 tons is aimed at meeting an expected increase in local demand, the spokesman for Marubeni, a major trading firm, said.

The joint venture, PT Chandra Asri, was set up by Japanese and Indonesian concerns to operate an ethylene plant now under construction in an industrial complex in Merak, 150 kilometers (93 miles) west of Jakarta, the spokesman said.

Under the expansion plan, propylene production will also be raised to 300,000 tons from 240,000 tons, he added.

Chandra Asri has invested about US$1.68 billion for construction of the plant, which is slated to open in May next year, the spokesman said, adding that the venture is considering additional investment of up to $460 million for the output expansion.

Marubeni and Showa Denko, Japan's fourth largest comprehensive chemical maker, have a combined 25 percent stake in the venture, capitalized at US$400 million, while Indonesia's Barito Pacific Group and other local concerns own the remaining 75 percent, he said.