PT Petro Oxo to build octanol plant in Gresik

JAKARTA (JP): PT Petro Oxo Nusantara, a newly-established joint venture company, is to set up Indonesia's first octanol plant in Gresik, East Java, with a production capacity of 100,000 tons per year.

"We'll start production late next year," Hashim S. Djojohadikusumo, commissioner of the joint venture, said after the ground breaking ceremony for the plant, which was attended by State Minister of Investment Sanyoto Sastrowardoyo in Gresik, Friday.

Petro Oxo is jointly owned by Hashim's company PT Tirtamas Majutama, PT Etarindo Anugerah Prakarsa, Southern Pacific Petroleum of Britain and Globechem Hong Kong,

Hashim noted that the construction of the chemical plant will need an investment of US$187 million.

"Some 35 percent of the plant's production will be exported, while the other 65 percent will be sold on the domestic market," he was quoted by Antara as saying.

Octanol is a raw material for making palsticizen di- octylphthalate, which is the raw material for making polyvinyl chloride (PVC).

Hashim said that the first octanol plant in Indonesia and Southeast Asia will use propylene and natural gas as its feedstocks. But he did not mention where the plant will procure its raw materials.

According to Hashim, besides its main production of octanol, the joint venture will also make two by-products, normal- butylalcohol (NBA) and Gso-butylalcohol, at an annual production rate of 20,000 and 13,000 tons respectively.

He pointed out that by the operation of the octanol plant, Indonesia will be able to save $110 million per year in foreign exchange spending for imports and earn $27 million per year from exports.

In the long term, he noted, the joint venture will double its production capacity to meet the rising demand of the local and foreign markets. (13)