Chandra Asri allocates $1b capex until 2019
Thursday, September 7 2017 - 01:15 AM WIB
IDX-listed petrochemical company has allocated around US$1 billion worth of capital expenditure (capex) until 2019 mostly to be used to finance various expansion programs, Kontan reported on Thursday.
The paper quoted Chandra Asri Director and Corporate Secretary Suryadi as saying that the company is expanding its butadiene production facility to reach annual production capacity of 137,000 tons from 37,000 tons. The new plant, estimated to cost $42 million, is expected to start operation in the second quarter of 2018.
The second project is capacity expansion of its naphtha cracker plant at a cost of $45 million. The third is a new polyethylene plant at a cost of $356 million that would increase annual production capacity by 400,000 tons to reach a total of 736,000 tons. The new plant is expected to start operation in the fourth quarter of 2019.
The fourth project is a planned expansion of polypropylene production capacity at a cost of $15 million that would increase production capacity to 590,000 tons from 480,000 tons.
Chandra Asri is also planning production diversification through planned development of a methyl tertiary butyl ether and butane-1 production facilities. (*)