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

Images By : Freepik

Sabtu, 14 September 2024 - 16:56 WIB

Essential Tips for Choosing Personal Health Insurance in the US

Choosing the right health insurance plan in the United States can be a complex task, especially with the variety of options available and the ever-changing landscape of healthcare policy. Here…

Images By : Freepik

Sabtu, 14 September 2024 - 16:53 WIB

The Top 10 Insurance Companies in the US for 2024

In the ever-evolving landscape of insurance, selecting the right company can significantly impact your financial security and peace of mind.

Images By : Freepik

Jumat, 13 September 2024 - 15:37 WIB

Why Airbnb Become Popular in 2024?

Airbnb fosters a more interactive experience between hosts and guests. Through direct messaging, guests can inquire about specific details, negotiate pricing, or clarify expectations, which…

Flag of the United Nations Organization.

Kamis, 15 Agustus 2024 - 14:26 WIB

Modena Officially Becomes a Member of the UN Global Compact

Commited to transforming towards sustainable business practices, Modena the global home appliance established over 60 years ago in Italy, officially became a member of the UN Globe Compact (UNGC)…

Totolink outlet. (Photo: Public Relation of Totolink)

Kamis, 11 Juli 2024 - 22:08 WIB

Totolink Strengthens Commitment to Innovative and Reliable Network Solutions for Indonesia

Marking a strategic step, Totolink Indonesia proudly announces the enhancement of its head office in Jakarta, located at Harco Mangga Dua Blok E No.28, Sawah Besar, Central Jakarta.