Salim Group to go into petrochemicals

Salim Group to go into petrochemicals

JAKARTA (JP): The Salim Group, through its subsidiary PT Sulfindo Adiusaha, is diversifying into the intermediate petrochemical industry by establishing joint ventures with Japanese and Hong Kong partners.

One of the joint ventures, PT Satomo Indovyl Monomer, will produce ethylene dichloride (EDC) and vinyl chloride monomer (VCM) for PT Satomo Indovyl Polymer, the other joint venture to be established.

Satomo Indovyl Monomer, owned 51 percent by PT Sulfindo Adiusaha, 25 percent by Sumitomo Corp. of Japan and 24 percent by Brenswick Ltd. of Hong Kong, will invest US$100 million into the construction of its petrochemical plant with a production capacity of 100,000 tons a year. Satomo Indovyl Polymer, 50 percent owned by PT Sulfindo Adiusaha, 25 percent by Sumitomo Corp. and 25 percent by Tosoh Corp. of Japan, will produce 70,000 tons of PVC per annum with an investment of $60 million.

The agreements to establish the two new joint ventures were signed here Monday by Hartono Gunawan of Salim Group, Andi Hartandi of Brenswick, Y. Kaneshige of Tosoh and S. Noguchi of Sumitomo.

The two new companies will soon begin construction of their plants, which are expected to start operating by the second half of 1997.

Hartono explained that Salim Group plans to overcome the scarcity of VCM in the country by establishing the plant. Indonesia imported 115,000 tons of VCM in 1994 to meet its demand, estimated at 250,000 tons.

Presently, PT Asahimas Subentra Chemical is the country's only producer of VCM with an annual production capacity of 150,000 tons.(32)