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 groundeaking 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

Kementan dan teknologi iradiator

Sabtu, 22 September 2018 - 21:30 WIB

Ministry of Agriculture Utilizes Gamma Iradiator Technology to Encourage Fresh Fruit Exports

South Tangerang - Indonesia as a tropical country has quite high fruit variants. Every region in the country has superior products and has been planted on a fairly large scale. In addition to…

Mentan Amran

Sabtu, 22 September 2018 - 21:00 WIB

Optimistic Minister of Agriculture Indonesia Can Have the Best Training Center in the World

Lembang - Agriculture Minister Andi Amran Sulaiman made a working visit to the Lembang Agricultural Training Center (BBPP) on Thursday (9/21). During this visit, Amran called on the employees…

Mentan Andi Amran Sulaiman, Menteri BUUMN Rini Soemarno, Menteri Desa PDT (Foto Humas)

Sabtu, 22 September 2018 - 20:30 WIB

Take Good Care of Agricultural Production, The Performance of the Minister of Agriculture Amran Asked not to be disturbed

Jakarta - Minister of Agriculture (Minister of Agriculture) Amran Sulaiman is considered to have demonstrated maximum work in maintaining the stock of food availability. Production in the agricultural…

Kepala (BPPSDMP) Kementan Momon Rusmono

Sabtu, 22 September 2018 - 20:00 WIB

Ministry of Agriculture Affirms the Commitment of Farmers' Welfare in the Main Meeting of the KTNA Group

Pangkal Pinang - Ministry of Agriculture affirms its commitment to encourage national food productivity to improve farmers' welfare. The existence of farmer groups is very important to empower…

Jaksa Agung, HM Prasetyo

Sabtu, 22 September 2018 - 19:30 WIB

AGO Appreciates Lombok's Earthquake Fund OTT

Jakarta - Attorney General Muhammad Prasetyo appreciated the performance of the Mataram District Prosecutor's Office, West Nusa Tenggara, who carried out the Lombok earthquake fund capture operation…