Kobe completes RI expansion

Kobe completes RI expansion

TOKYO (Dow Jones): A Japanese consortium of companies led by
Kobe Steel Ltd has completed expansion of a chlor-alkali plant in
Indonesia and the facility has begun commercial production, the
major steelmaker said yesterday.

In addition to Kobe Steel, the consortium consists of Asahi
Chemical Industry Co and its subsidiary Asahi Engineering Co, as
well as Sumitomo Corp. The group signed a US$57 million contract
with PT Sulfindo Adiusaha in April 1996 to expand production at
the Indonesian company's chlor-alkali plant in Merak, West Java.

The project called for increasing production capacity from
100,000 metric tons per year to 210,000 tons. Technology was also
upgraded from using mercury to using Asahi Chemical's ion-
exchange membrane process. The plant was completed in April this
year and is currently in full production.

Sulfindo Adiusaha supplies caustic soda to fiber and pulp
companies in Indonesia. Although demand in Indonesia has
slackened recently, exports to Malaysia and Australia have been
rising.

The caustic soda produced is used to bleach paper, as well as
a disinfectant.