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Chandra Asri to start work on new petrochemical complex in 2023
Indonesia’s largest integrated petrochemical manufacturer says the new facility will roughly double its production capacity.
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An employee uses a walkie-talkie at a factory construction site belonging to petrochemical giant PT Chandra Asri Petrochemical in Cilegon, Banten, in this undated picture. (Antara/Asep Fathulrahman)
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T Chandra Asri Petrochemical, the country’s largest integrated petrochemical manufacturer, has set itself a target to begin with the construction of a planned new petrochemical complex in 2023.
Valued at approximately US$5 billion, the facility is expected to raise the company’s production capacity from the current 4.2 million tons a year to more than 8 million tons. Chandra Asri subsidiary PT Chandra Asri Perkasa (CAP 2) will develop the new complex.
“We will continue to increase [production] capacity and expand our market,” Chandra Asri human resources and corporate affairs director Suryandi said at the 2021 Capital Market Summit & Expo on Oct. 14.
Read also: Chandra Asri prepares new US$5 billion factory
Suryandi said the new facility was expected to save the government foreign exchange reserves of up to $2.3 billion per year by reducing imports of petrochemical products, considering that, as of today, 50 percent of domestic petrochemical products are shipped in from oversees.
The facility, he added, would produce petrochemical products including polyethylene and polypropylene, two of the company’s main products.
The publicly listed company is in a partnership with Thai Oil Public Co Ltd (Thaioil), which operates the largest refinery in Thailand, as a strategic investor to support the development of the new facility. Thaioil has become one of Chandra Asri’s shareholders through a rights issue worth $1.1 billion, which was completed on Sept. 15.
