Polychem Indonesia looks for coal

PT Polychem Indonesia, the country?s second-largest chemical maker, plans to build coal-fired power plants and install steam boilers at its factories to cut costs after crude oil prices soared. The Jakarta Post reported on Friday.

The company will spend US$59.4 million in the next three years to switch from diesel to coal, Polychem said.

Polychem expects to reduce production costs by as much as Rp 262 billion (US$28.2 million) annually after it switches to coal, the company said. It will build three power plants with a total capacity of 49 megawatts and install steam boilers at factories producing polyester and ethylene glycol, which is used as an engine coolant and antifreeze.

The company's polyester facilities are located in Tangerang and Karawang, while its three chemical plants are located adjacent to each other and share common facilities in Merak. Its products are marketed both domestically and internationally, including other Asian countries, the United States, Europe and the Middle East. (*)