Peni to increase capacity in 1997

Peni to increase capacity in 1997

JAKARTA (JP): PT Peni, one of two producers of polyethylene in
Indonesia, has signed here an agreement with Technip and Japan
Gas Corporation (JGC) to increase its capacity from 250,000 tons
at present to 550,000 tons by the end of 1997.

The company's marketing Development Manager, Budi Susanto,
said here yesterday that total investment for the expansion is
estimated at about US$200 million.

He said that based on the agreement--called Alliance
Commitment--Technip will be responsible for detailed engineering
and procurement, JGC for construction and PT Peni for
commissioning.

Peni's President Jim Hay said that Peni will play a key role
in servicing the polyethylene market in Indonesia. "We've been
finalizing details for this latest expansion for some time and
the project is now underway," he said.

PT Peni, Indonesia's first and biggest producer of
polyethylene, which is used as a raw material in the production
of plastic goods, came on stream in February 1993 with a capacity
of 200,000 tons. In 1994, it increased its capacity to 250,000
tons with BP Chemicals chromium catalysis technology.

Its shareholders are BP Chemicals (51 percent), Mitsui & Co
Ltd (12.5 percent), Sumitomo Corporation (12.5 percent), Sigit
Harjojudanto (9 percent) and PT Arsero Petrokimia (15 percent).

The other producer of polyethylene in the country is Chandra
Asri, which also produces ethylene -- needed to make polyester.
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