UIC, Nikki sign deal

UIC, Nikki sign deal

JAKARTA (JP): PT Unggul Indah Corporation (UIC) and Nikki Universal, a U.S.-Japanese joint venture, signed here yesterday an engineering and licensing agreement to develop the third unit of detergent allkylate process in Merak, West Java.

Unggul Indah, the country's only producer of alkyl benzene producer, announced here yesterday that the project, which will be started at the second quarter of next year and completed at the end of 1997, will cost about US$50 million.

The fund will be derived from its retained profit and bank loan, the company said in a statement.

The project, which will be built at Unggul Indah's industrial base in Merak, will increase its capacity by 60,000 tons to 270,000 tons per year to meet the growing needs of local and foreign markets.

Beside the expansion, Unggul Indah, which is owned by PT Salim Chemicals, PT Aspirasi Luhur and PT Alas Pusaka, is also developing a production unit, called Pacol (Paraffin Convert to Olefin), to convert paraffin into olefin.

The unit, which is expected to be completed later next year, will enable the company to diversify its raw materials. (13)