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. (13)