Tomen enters Indonesia

Tomen enters Indonesia

TOKYO (AFP): Japan's Tomen Corp. and Korea Polyol Co. Ltd. will set up a joint venture in Indonesia for polypropylene glycol (PPG) production, jointly with local concern Aneka Kimia Raya Artika, Tomen said yesterday.

The partners will invest a total of US$26 million in the venture, including the initial capital of $10.4 million, the Japanese trading house said in a statement.

Tomen said it would hold a 40 percent stake in the venture, with Aneka holding 30 percent, Korea Polyol 25 percent and Sanyo Chemical Industries. Ltd., another Japanese firm, the balance of five percent.

To be named PT Aneka Polyol Indonesia, the venture is expected to start producing PPG at a rate of 20,000 tonnes a year in the second quarter to June 1999, it said.

The venture would deliver 80 percent of its output locally and export the rest, Tomen said.