Toray to produce resin for plastic bottles

Toray to produce resin for plastic bottles

JAKARTA (JP): PT Indonesia Toray Synthetics announced
yesterday the establishment of a joint venture company which will
build Indonesia's first polyethylene terephtalic (PET) resin for
plastic bottles in Tangerang, West Java.

The US$34 million plant, to be designed with an annual
capacity of 30,000 tons, will meet the country's demand for PET
resin, which is estimated at 20,000 tons a year.

The company estimated Indonesian demand for PET resin has been
growing by 15-20 percent a year as a result of the rapidly
expanding beverage (notably soft drink and mineral water) and
pharmaceutical industries.

The joint venture company will be capitalized at about US$11
million, of which Toray Industries Inc. will own 32.5 percent,
Mitsui Petrochemical 37.5 percent, Indonesia's Petindo Group 15
percent, Mitsui & Co. Ltd. five percent and Toray's Indonesian
subsidiary, PT Indonesia Toray Synthetics 10 percent.

"The joint venture partners will enable the plant to supply
high-performance PET resin to industrial users," Toray Indonesia
said in a press release.

The company said the plant, slated to start production in
early 1996, besides fulfilling local demand will also export part
of its production.

"Our plant therefore will enable Indonesia both to save
foreign exchange, which has now to be spent on imports and to
generate additional export earnings," the release added.

Indonesia at present depends entirely on PET imports mainly
from Taiwan, Japan and South Korea. (vin)