The Jakarta Post
PT Chandra Asri Petrochemical Tbk (TPIA), Indonesia’s integrated petrochemical company, started construction on a polyethylene (PE) plant in Cilegon, Banten, on Monday.
The company said in a statement that the plant would more than double Chandra Asri’s polyethylene production capacity to 736 kilotons per annum (KPA).
The groundbreaking ceremony for the project was held at the integrated petrochemical factory complex in Cilegon, where the new plant will be constructed, with total investment of US$350 million. Chandra Asri president director Erwin Ciputra and representatives of engineering, procurement and construction companies attended the event.
The new plant, which is scheduled to be completed by the end of 2019 and start operations in early 2020, will produce high density polyethylene (HDPE), linear low density polyethylene (LLDPE), and metallocene LLDPE (mLLDPE).
The products will be used, among other purposes, for rice sacks, bottle lids and shopping bags.
The factory is being built to anticipate rising domestic demand for polyethylene, fueled by the rapid growth of the plastics and packaging industries in Indonesia, the statement says.
“Indonesia’s current PE market demand is estimated at around 1.4 million tons per annum and will continue to grow along with the country’s GDP,” Erwin said in a statement.
“Our new PE plant will be an additional source of domestic supply of PE products, replacing imports and reducing the country’s foreign exchange outflow.” (kmt/bbn)