ICI forms joint venture

ICI forms joint venture

JAKARTA (JP): ICI Polyurethanes, a subsidiary of Britain's
Imperial Chemical Industry Plc, signed a memorandum of
understanding yesterday with PT Tansri Gani to establish a joint
venture to produce and distribute polyurethane in Indonesia.

The joint venture, PT ICI Polyurethanes Indonesia, plans to
open a production plant at the Jababeka industrial estate in
Cikarang, West Java, in 1998 with an initial production capacity
of 5,000 tons a year.

ICI Polyurethanes, the majority shareholder, plans to invest
around US$200 million in the polyurethanes production plant and
its laboratory over the next three years.

Polyurethane is a plastic used for making furniture,
electrical equipment, shoes, paints and other products.

ICI has built production plants in the United States, Britain,
the Netherlands and China. PT Tansri Gani has two production
plants in Jakarta.

ICI Polyurethanes director Chew Eng Soo said the companies
started cooperating in 1980s when ICI commissioned Tansri Gani as
its Indonesian agent. ICI later licensed Tansri Gani to produce
its polyurethane.

"We are pleased to see our longtime cooperation has ended up
in us establishing this joint venture," Chew said. (jsk)