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)