Chandra Asri Prepares Development of the Second Petrochemical Complex

INDUSTRY.co.id - Jakarta - The management of PT Chandra Asri Petrochemical Tbk (TPIA) is preparing the construction of a second petrochemical complex this year. Currently, the activity is just entering the preparatory stage of the feasibility study (pre-feasibility study).

Preparation is expected to increase the amount of capital expenditure (capital expenditure / capex) required by the company in 2018.

"The company's management is allocating US $ 300 million to finance its capital expenditure this year," said Harry Tamin, Head of Investor Relations at TPIA, in Jakarta recently.

Previously, the management of the largest petrochemical producer in Indonesia is expected to allocate US $ 250 million of capital expenditure. But with the plan to build the second petrochemical complex, the company's capital expenditure will be 25% higher than its original estimate.

According to Harry, the majority of TPIA's capital expenditure funds this year will be used to finance various ongoing expansion projects, namely the expansion of polyethylene plant construction and the expansion of polypropylene plant predicted to be completed by 2020.

"Meanwhile, the development of a synthetic rubber plant in collaboration with Michelin and the debottlenecking of the butadiene plant is predicted to be operational this year," said Harry.

Harry also revealed, the performance of TPIA in 2018 is estimated to be flat. That is due to the possibility of a decrease in the selling price of petrochemical products this year. (Abrahan Sihombing)