Sud-Chemie to build RI plant

Sud-Chemie to build RI plant

JAKARTA (CNI): Sud-Chemie Indonesia, a subsidiary of German specialty chemicals maker Sud-Chemie will spend US$10 million (10.7 million euros) to build a 45,000 ton/year bleaching earth absorbent plant in Medan, North Sumatra.

The bleaching earth will be used as absorbent in cooking oil production both for domestic users and export markets.

Sud-Chemie told CNI on Thursday that it will process the raw material bentonite from the mines in Sipirok, Tapanuli Selatan, North Sumatra which could supply up to 50,000 ton per year of bentonite to the plant.

The new plant will create 300 new jobs including those for mining bentonite.

Construction, to begin later this month, will be completed within 12 months. Indonesia's demand for bleaching earth are currently met by imports from Malaysia and Europe.