Lotte plans $5b new ethylene plant in Banten

IDX-listed PT Lotte Chemical ChainTbk is planning an investment worth US$5 billion to build a new plant to produce ethylene and propylene in Cilegon, Banten.

President Director of Lotte Chemical Chain, Yoon Sungku, was quoted as saying Thursday that the capacity of the new plant for ethylene and propylene will be as much as 1 million metric ton a year. ?We are still negotiating with PT Krakatau Steel for the land, we need a land of about 40-50 hectares,? he said.

According to him, there has been a feasibility study about the new plant and the management has bank land of about 40 hectares, then total area for the new plant will be about 100 hectares.

He said the source of funds will be from cash internal holding company in Korea with amount US$3 billion and other will be from the syndication of banks in Korea. ?We will publish the bank in case of dealing, the syndicate bank consists from local bank and international bank,? he said.

The new plant of ethylene and propylene will aim to support the upstream chain of PT Lotte Chemcial Titan Nusantara. (*)