Chandra Asri Petrochemical Targets New Polyethylene Plant to be Completed By 2019

INDUSTRY.co.id - Jakarta - PT Chandra Asri Petrochemical Tbk (TPIA) targets a new polyethylene plant with a capacity of 400,000 tons per year to be completed by 2019.

Chandra Asri Petrochemical President Director Erwin Ciputra said the current market demand for polyethylene in Indonesia is estimated to be around 1.4 million tons per year and will continue to grow in line with the increase in national gross domestic product.

"Our new polyethylene plant will be an additional source of domestic polyethylene products as import substitution and reduce foreign exchange outflows," Erwin said in Jakarta, Monday (09/12/2017).

Currently, the company operates a polyethylene plant with a capacity of 336,000 tons per year. Thus, with the construction of a new polyethylene plant with a capacity of 400,000 tons will increase its production capacity to 736,000 tons per year.

The Company has also conducted Limited Public Offering II for additional capital by granting preemptive rights (HMETD). The proceeds from the rights issue are used to finance the addition of production capacity and product diversification and other capital expenditures.

In addition, the corporate action is also to meet the minimum requirements of free float shares of 7.5% of the Indonesia Stock Exchange. Rights issue is also conducted as a step to expand the investor base while increasing trade liquidity, strengthening the company's position, and increasingly developing the company's access to domestic and international capital markets.