Dongjin expands petrochemical plants

JAKARTA (JP): Petrochemical producer PT Dongjin Indonesia will invest about US$25 million to expand the production capacity of its petrochemical plants in Cilegon, West Java, the company said yesterday.

Company general manager Leo Subagyo said Dongjin would invest $5 million to increase the production capacity of its foaming agent production facilities in Cilegon's Krakatau Industrial Estate to 24,000 tons a year from 14,200 tons a year at present.

It would also invest another $20 million to build a new plant to produce hydrazine -- the foaming agent's raw material -- in the estate with a 15,000 ton capacity a year, Leo added.

"By building a hydrazine plant, we want to stop our dependency on the importation of hydrazine," he said adding that the company imported hydrazine from the United States and France.

Leo said the company would use local raw materials to produce hydrazine.

Construction of the new foaming agent facilities was scheduled for completion by the end of February, 1998, he said adding the hydrazine project, due to start next year, would be completed by 1999.

PT Dongjin Indonesia was established in 1990 with an initial $4.2 million investment. It is 80 percent owned by South Korea's Dongjin Chemical Ind. Co. Ltd and 20 percent by Indonesian businessman Hendro Angesti.

Leo said Dongjin Indonesia sold 30 percent of its products to the domestic market and exported 70 percent of its products to 50 countries including the U.S., Japan, Germany and South America.

With the completion of Cilegon's new facilities, Dongjin Chemicals will supply the world market with 34,000 tons of foaming agents a year, including 10,000 tons a year from its factory in Shiwha, South Korea.

Dongjin's sales were expected to reach $180 million in 1998 and further increase to $210 million in 1999, he said.

Leo said Dongjin was among the world's biggest foaming agents manufacturer with a world market control of 35 percent. (jsk)