Hasjim joins with British company to produce olefin
Hasjim joins with British company to produce olefin
JAKARTA (JP): PT Trans-Pacific Petrochemical, an Indonesian-
British joint venture, will establish an integrated olefin and
aromatic center with a total annual production capacity of 2.2
million tons in Tuban, East Java, a reliable source said.
"PT Tirtamas Majutama, a subsidiary of Prima Comexindo Group,
and Britain Trans Pacific Petrochemical have agreed to invest
US$1.98 billion with composition of 10:90," the source at the
Investment Coordinating Board told The Jakarta Post yesterday.
He elaborated that the planned plant will produce 275,000 tons
of methane and pyrolysis fuel oil, 850,000 tons of ethylene and
propylene, 225,000 tons of C4 component, 300,000 tons of benzene
and toluene, 470,000 tons of paraxylene and A10 component and
100,000 tons of orthoxylene a year.
Prima Comexindo Group, which trades with countries in the
Commonwealth of Independence States, is owned by Hasjim
Djojohadikusumo.
The olefin plant, to be built on a 200-hectare area,
will start trial operation in June 1999 and commercial production
one year later. About 15 percent of the petrochemical production
is slated to be exported.
The planned olefin plant will be the second mega project to
produce petrochemicals used as raw materials for the production
of fibers and plastics. PT Chandra Asri Petrochemical Center in
Cilegon, West Java, started operation in May.
PT Chandra Asri is a joint venture of Siemen International
Ltd., Stallione Co, Ltd., and Japan Indonesia Petrochemical
Investment Corporation with a total investment of US$1.9 billion.
Another source was quoted by Republika as saying that
President Soeharto has agreed on the establishment of the
integrated aromatic and olefin plant in East Java.
Earlier reports said that State Minister of Investment Sanyoto
Sastrowardoyo, who is also chairman of the Investment
Coordinating Board, had disclosed that Indonesia still needs more
olefin centers as the country's demand for olefin products, such
as ethylene, propylene, polyethylene and polypropylene, would
grow in the future.
Industrial data show that Indonesia needs some 600,000 tons of
ethylene in 1996 while Chandra Asri's annual production
capability is only 300,000 tons. In 1997 the demand for ethylene
will rise to 760,000 tons.
Indonesia's propylene imports are projected to decline from
395,000 tons this year to 150,000 tons in 1999 after the
operation of the East Java project.(kod)