TPPI plans to build new paraxylene plant

Petrochemical firm PT Trans Pacific Petrochemical Indotama (TPPI) plans to build a new paraxylene plant with a capacity of about 600,000 per ton in the company?s petrochemical complex in Tuban, East Java, Bisnis Indonesia reported Thursday.

Amir Sambodo, the president director of Tuban Petrochemical industries, which owns TPPI, said in Jakarta on Wednesday that the construction of the new plant would cost up to US$500 million and further increase the existing capacity of the company?s paraxylene plant.

?If we can cooperate with Pertamina, the construction of the plant can be begun next year. If not, we have to wait until 2011,? he said, adding that the new plant would help reduce the country?s imports.

The paraxylene is the raw materials for the production of purified therepthalic acid (PTA) which is widely used for synthetic production. Last year, Indonesia imported about 600,000-970,000 tons of paraxylne to meet the domestic demand which is estimated to reach 1.2 million tons a year.

Last year, Indonesia produces only about 392,000 tons from installed capacity of 770,000 tons of paraxylene a year. About 500,000 tons are produced by TPPI and the remaining 220,000 tons by Pertamina?s Balongan refinery plant. (*)