Eterindo to set up S$75m petrochemical plant

JAKARTA (JP): Publicly listed petrochemical manufacturer PT Eterindo Wahanatama plans to build a new plant with investment of about US$75 million in Gresik, East Java.

The company's General Manager of Finance Wahyudi Harjo T said yesterday the plant was expected to start commercial production in October 1998.

He said it was now being built and would have a production capacity of about 60,000 metric tons of phthalic anhydride and maleic anhydride per annum.

"The new plant is expected to boost Eterindo's financial performance," he said.

Yudi said that Eterindo Wahanatama, which was established in 1992 by the Sridaja family, groups seven chemical companies: PT Eternal Buana Chemical Industri (EBCI), PT Petrowidada, PT Anugerahinti Gemanusa, PT Inti Mutiara Gasindo, PT Eterindo Nusa Graha, PT Globechem Pacific Perkasa and PT Buana Slovindo.

EBTI can produce 100,000 metric tons a year of plasticizers, synthetic latex resins, unsaturated polyester resin and alkyd and amino resin at its plant in Tangerang, West Java.

PT Petrowidada manufactures phthalic anhydride. It can produce 70,000 metric tons a year at its plant in Gresik, East Java.

PT Eterindo Nusa Graha makes synthetic resin and plasticizers and can make 60,000 metric tons a year.

PT Anugerahinti Gemanusa manufactures polyvinyl alcohol and acetic acid and can make 69,000 metric tons a year.

Yudi said the company posted a consolidated net profit of Rp 19 billion in the first quarter this year, up from Rp 4.9 billion in the same period last year.

The company's net sales rose to Rp 84 billion in the first quarter this year, from to Rp 63 billion last year.

"The company expects a further rise in net sales and profit this year due to its expansion," Yudi said.

Early last month the company made its capital debut by floating 170 million shares, or 25 percent of its enlarged capital, through the Jakarta Stock Exchange.

The company raised about Rp 240 billion from its capital market debut.

Of the proceeds, about $50 million was used to build PT Anugerahinti Gemanusa's plant, a polyvinyl alcohol and acetic acid producer. Another US$10 million was used as working capital for PT Eterindo Nusa Graha, $10 million repaid EBCI's debts, $10 million modernized EBCI's production facilities, $13 million was working capital for EBCI and $2 million repaid EBCI's leasing facility. (09)