Petrochem begins expansion of Serang industrial complex

JAKARTA (JP): PT GT Petrochem Industries, a diversified petrochemical company of the Gajah Tunggal Group, began yesterday constructing an ethoxylate plant in its industrial complex in Serang, West Java.

Petrochem president Fredy Gozali said the new plant was expected to begin commercial production in the middle of next year.

"Progress in the textile and chemical industry in the country encouraged us to diversify our business operation to upstream production," Fredy said at the ground-breaking ceremony for the new plant.

Petrochem now produces ethylene glycol in the same complex in Serang, with a production capacity of 216,000 tons a year.

Freddy said the new plant would be able to produce 30,000 tons of both nonyl phenol ethoxylate, and fatty alcohol ethoxylate a year.

Ethoxylate is used to produce disinfectant and washing agents such as detergents.

He said 70 percent of the ethylene glycol would be used to supply domestic demands, and the rest would be exported.

The plant used the technology of the U.S.-based Scientific Design Co. Its main contractor is the Samsung Engineering Co of South Korea.

Ethylene glycol is used to produce polyester and plastic bottles.

Minister of Industry and Trade Tunky Ariwibowo said yesterday in a speech delivered by the director general of metal, machine and chemical industry, Effendi Soedarsono, that Petrochem's ethylene glycol production contributed 10 percent of the total production capacity in Asia.

Significant

"The plant expansion is significant in the development of the petrochemical industry in the Southeast Asian region and in Indonesia, as this is the only ethylene glycol plant in the region," he said.

He said ethylene glycol exports in Indonesia reached US$12.6 million with 17,000 tons, but last year the value fell to $1.5 million.

Fredy said Petrochem was also building a plant in the same complex which will start producing synthetic rubber early next year.

The new plant cost $130 million in investment, and will produce 60,000 tons of synthetic rubber a year.

"This is the first synthetic rubber plant in the country," he said.

Petrochem's ethylene glycol plant started operation in 1993, producing 80,000 tons a year, with investment totaling $250 million.

In 1996, the company expanded the plant and increased the production capacity to 96,000 tons a year. (das)