Risjad Brasali to operate chemical plants

JAKARTA (JP): Risjad Brasali Industries (RBI), a group of chemical-based companies, will strengthen its industrial activities by operating four new chemical plants worth Rp 500 billion (US$230 million) and establishing a $76 million hydrogen peroxide plant within two years.

An assistant director of the group, Prawiranegara Sugito, said yesterday that three of RBI's new chemical plants located in Cilegon, West Java, will start commercial production next January, while another plant in Bekasi will kick off production next month.

"The three Cilegon plants are being built at a total cost of Rp 400 billion," Prawiranegara said.

He said 40 percent of the three plants are financed by the RBI's equity and the remainder by a syndication of domestic banks.

Prawiranegara said the plants will produce styrenic polymer resin, including alcalic butyl styrene (ABS), styrene acrylic netrine (SAN) and esphanabel polystyrene (EPS).

Styrenic polymer resin is widely used as material for the production of electronic and automotive parts, packaging and consumer goods.

Prawiranegara said ABS will be produced by one of RBI's subsidiaries, PT Risjad Brasali Styrindo, at an annual rate of 40,000 tons, while SAN and EPS will be manufactured by another subsidiary, PT ABS Industri Indonesia.

He said the production capacity for SAN is 20,000 tons per year and for EPS, 15,000 tons.

Prawiranegara said another plant, which is being built at a cost of Rp 100 billion at the Cikarang Industrial Estate in Bekasi, will produce carboxy methyl cellulose (CMC), a basic material for the manufacture of textiles, detergent, paper, food, ceramics and pharmaceuticals, as well as a substance for oil drilling.

Finance

Prawiranegara said CMC will be produced by PT Risjad Brasali Chemindo at an annual rate of 6,000 tons of CMC technical grade and 4,000 tons of CMC purified grade.

Meanwhile, RBI's chief commissioner, Ibrahim Risjad, said that another subsidiary, PT Risjad Brasali Peroxida, will establish a plant at the Cikarang Industrial Estate to produce 30,000 tons of hydrogen peroxide (H2O2) with 50 percent of concentration.

Hydrogen peroxide is widely used as basic material for textiles, paper, wood and rattan industries and in waste treatment plants.

Prawiranegara said 70 percent of the total chemical production of RBI will be sold domestically.

He said Indonesia last year imported 16,000 tons of hydrogen peroxide and 5,311 tons of carboxy methyl cellulose. (02)