Chandra Asri Invests US $ 350 Million to Build New Polyethylene Plant

By : Abraham Sihombing And Aldi Firhand. A | Monday, February 05 2018 - 21:50 IWST

PT Chandra Asri Petrochemical Tbk (TPIA)
PT Chandra Asri Petrochemical Tbk (TPIA)

INDUSTRY.co.id - Jakarta - PT Chandra Asri Petrochemical Tbk (TPIA) started to build a new polyethylene (PE) plant in Cilegon petrochemical complex, Banten Province. It was marked by the groundbreaking for the construction of the plant.

"The polyethylene plant with a production capacity of 400 kilo tons per year (KTA) will be built with an investment of US $ 350 million. Construction of the plant is expected to be completed by the end of 2019 so that it can start operating in early 2020, said Erwin Ciputra, Managing Director of TPIA, in Jakarta on Monday (05/02/18).

Erwin said the new plant will produce High Density Polyethylene (HDPE), Linerar Low Density Polyethelyne (LLDPE), and Metallocene LLDPE.

"LLDPE and HDPE are usually used as raw materials to produce blown films, rice bags, toys, bottle caps, shopping bags, household appliances, ropes, tarpaulins, pipes, container boxes and so on," Erwin said.

Erwin said, the construction of the factory aims to anticipate the high demand of PE in the domestic market as the rapid development of plastic and packaging industry in Indonesia.

"PE demand in Indonesia is currently predicted to reach 1.4 million TPA and will continue to increase in line with the growth of gross domestic product (GDP), said Erwin.

Erwin explained, the new PE factory will produce more PE products to meet domestic needs as a substitution and reduce foreign exchange outflow.

Currently, the company operates a PE factory with a production capacity of 336 KTA. Therefore, the construction of a new PE plant with a capacity of 400 KTA is expected to increase the production capacity of the company's PE to 736 KTA.

News Comment

Today's Industry

PT Robert Bosch, a subsidiary of Bosch Group in Indonesia (photo Abe)

Rabu, 18 Juli 2018 - 22:49 WIB

2017, Robert Bosch Records Sales Rp1, 6 Trillion

PT Robert Bosch, a subsidiary of the Bosch Group in Indonesia, posted sales of Rp1.6 trillion in 2017, a 28 percent increase compared to 2016's sales of Rp1.25 trillion.

Citilink (ist)

Rabu, 18 Juli 2018 - 22:48 WIB

Reported Missing Contact, Citilink Management Convey the Inaccurate Information

Citilink aircraft with flight number QG 801 reportedly lost contact and experienced an emergency this afternoon. However, the information was ignored by the airline's flag carrier Garuda Indonesia…

Secretary General of the Ministry of PUPR, Anita Firmanti in the launch of Indonesia Construction event in his office on Wednesday (18/7).

Rabu, 18 Juli 2018 - 22:45 WIB

This Year Indonesia Construction Exhibition Will Be Held

Indonesia's infrastructure or construction exhibition will be held again from 31 October to 2 November 2018 at the Jakarta International Expo Kemayoran.

Illustration of Creative Economy Agency (Bekraf)

Rabu, 18 Juli 2018 - 22:40 WIB

Bekraf Give Commitment to Raise Local Game Market

The Creative Economy Agency (Bekraf) is committed to raising the local game's "game" market share to 10 percent.

Presiden Jokowi dan PM Malaysia Mahathir Mohammad (Foto Setkab)

Rabu, 18 Juli 2018 - 22:38 WIB

Mahathir Admis Will Apply SST

Malaysian Prime Minister Mahathir Mohamad insists on applying Service and Sales Tax (SST) or Service and Sales Tax to replace Goods and Service Tax (GST) or Goods and Services Tax.