Chandra Asri to build new polyethylene plant
Thursday, September 15 2016 - 04:59 AM WIB
Kontan said that the company is currently at the stage of design package process, and plans to start construction next year in the hope the new plant can start operation in 2019.
The company has decided to use technology from US-based Univation Technologies LLC for the new plant, which will process ethylene into linear low density polyethylene (LLDPE), high density polyethylene (HDPE), and metallocene LLDPE, said Suryandi, Chandra Asri?s Head of Human Resources and Corporate Administration.
He was quoted by Kontan as saying that once the new plant has been completed, the company will stop selling its extra ethylene output to the retail market including Lotte Chemical Titan and Asahimas Chemical.
According to Suryandi, current domestic demand for polyethylene is estimated to be around 1.4 million tons per year, and is expected to rise by around 7-8 percent per year. Chandra Asri currently holds 25 percent share of the domestic market, other players 32 percent, and import accounts for 43 percent.
He said that Chandra Asri aims to boost its share of the domestic market to 50 percent with the expansion of its polyethylene plant.
Investor Daily said that Chandra Asri currently operates a polyethylene plant in Cilegon with capacity of 336,000 tons per year. (*)