New firm to produce peroxides
New firm to produce peroxides
JAKARTA (JP): Sinar Mas Group, through its holding company PT
Sinar Mas Tunggal, has established a new joint venture company
with NOF Corporation and Marubeni Corporation, both of Japan, for
the production and sale of organic peroxides in Indonesia.
The group said in a statement yesterday that the joint venture
company, named PT NOF Mas Chemical Industries, will construct an
organic peroxide plant with an annual production capacity of
4,000 metric tons in Bekasi, West Java, at a cost of US$37
million,
The new joint venture is 55 percent owned by NOF Corporation,
15 percent by Marubeni Corporation and 30 percent by Sinar Mas
Group.
The statement said that out of the cost, $13 million will be
financed with the company's equity and the remaining $24 million
with loans.
The new venture company will start constructing the plant by
November and begin operating it by the middle of 1997, the
statement said.
The organic peroxides to be produced by the new company will
include various kinds of polymerization initiators which are used
for the production of PVC, LDPE, PS and dicumylperoxide (DCP) for
synthetic rubbers, EVA and LDPE.
Sinar Mas Group is a Jakarta-based conglomerate controlled by
Eka Tjipta Widjaja, which concentrates its operations in real
estate and financial services, as well as having interest in pulp
and paper, plantations and vegetable oil refineries.
The statement mentioned that Indonesia has been chosen as the
site for the new chemical company due to its strategic location
and healthy foreign investment incentives.
Furthermore, the Asian market, particularly the ASEAN
countries and China, have shown huge potential for sales growth.
Besides Indonesia, the Association of Southeast Asian Nations
(ASEAN) also groups Brunei, Malaysia, the Philippines, Singapore,
Thailand and Vietnam.
In Japan, NOF is a leading producer of organic peroxide with a
market share of 50 percent, while the company's market share in
the world is estimated at 15 percent to 20 percent. (31)