Indorama to build 60-MW coal fired power plant

Petrochemical giant PT Indorama Synthetics has planned to build a 60-megawatt (MW) coal fired power plant to supply electricity to its petrochemical factory in Purwakarta, West Java, Detik.com news website reported Friday.

The power plant is planned to start operation in 2005 or 2006, Indorama president director Vinod Laroya was quoted as saying Friday. He did not say however when the construction of the project would be started.

Vinod said Indorama?s petrochemical plant in Purwakarta required 50 MW of electricity.

Indorama would be able to cut its operational costs by operating its own power plant because the company currently bought electricity at up to 7 US cent per kilowatt-hour.

The project would cost US$60 million, which would come from Indorama?s own funds, and loans from International Finance Corporation and several banks, Vinod said.

Indorama produces premium quality raw materials, mainly polyester based, for the global textile and packaging industry.

Its exports mainly go to Europe and North America.

Indorama, which is listed on the Jakarta Stock Exchange, is owned by PT Irama Unggul (38 percent), Indorama Intl Fin Plc of United Kingdom (13 percent), International Finance Corporation (7 percent), and the public (42 percent). (*)