Indonesian Political, Business & Finance News

Risjad Brasali to operate chemical plants

| Source: JP

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)

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