Timah?s tin chemical production behind schedule

State tin company PT Timah will delay the commencement of the company?s tin chemical production in Cilegon, Banten due to some technical problems in the construction of its production facilities.

Timah's president director Wahid Usman said in Jakarta on Monday that the commercial production would begin in the second semester of 2010 instead of May as originally scheduled.

?We hope the trial operation can be carried out within the next two months, then the commercial production can be carried in the next four months,? he said.

Timah is currently building a tin chemical factory as part of its expansion into downstream industry, with total investment of Rp 150 billion (1US$ = Rp 9,260). The factory will have a production capacity of 10,000 tons a year. The capacity will later be increased to 30,000 tons.

Wahid said that the tin chemical will be exported to South Korea, Japan and the United States. Tin chemical is mostly used in the plastic industry. Timah began building the factory in January 2009. (bernard)