Chandra Asri appoints Toyo as contractor for new polyethylene plant
Monday, September 4 2017 - 11:00 AM WIB
IDX-listed PT Chandra Asri Petrochemical Tbk (CAP), the largest integrated petrochemical company in Indonesia, announced Monday it has signed an EPC contract (engineering, procurement, and construction) with Toyo Engineering Group for the construction of a new Polyethylene (PE) plant facility which will be located in the company's integrated Naphtha Cracker complex in Cilegon, Banten Province.
The company said in a statement that prior to this award in September 2016, CAP has also signed a license agreement with Univation Technologies, LLC to use UNIPOL? PE Process as the process technology for this new 400KTA PE plant.
Toyo Engineering Corporation (Toyo Japan) and Toyo Engineering Korea Limited (Toyo-Korea) are in charge of detailed engineering and suppliers of imported equipment, while PTInti Karya Persada Tehnik (IKPT- Indonesia) as the contractor and supplier of local equipment, the statement said.
This new plant facility will produce High Density Polyethylene (HDPE), Linear Low Density Polyethylene (LLDPE), and Metallocene LLDPE (mLLDPE). Some of the product applications for LLDPE and HDPE among others as blown film, rice bag, toy, bottle lid, shopping bag, houseware, rope, tarpaulin, pipe, container box, etc.
CAP said the total project, estimated to cost some US$350million, is expected to be completed by the end of 2019 and commence operation at the beginning of 2020.
Erwin Ciputra, President Director of CAP said Indonesia's current PE market demand is estimated around 1.4 million TPA and will continue to grow along with the country's GDP. ?Our new PE plant will be an additional source of domestic supply of Polyethylene products thereby replacing imports and reducing the country's foreign exchange outflow,? he said
He added, "This investment is another remarkable milestone in 25th anniversary year demonstrating CAP's continued commitment as backbone industry for country economic development.?
CAP currently operates a 336KTAof PE plant, therefore, this new construction of 400KTA PE plant will bring total CAP's PE production to 736KTA.
Editing by Reiner Simanjuntak