Petrochem begins expansion of Serang industrial complex

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)