JAKARTA (TheInsiderStories) – PT Chandra Asri Petrochemical Tbk (IDX: TPIA), an integrated petrochemical company, has commenced the groundbreaking of a new Polyethylene Plant project with a capacity of 400 kilotons per annum (KTA) in Cilegon, Banten province. This new polyethylene plant facility will produce High Density Polyethylene, Linear Low Density Polyethylene, and Metallocene LLDPE.
The rapid growth of the plastics and packaging industries in Indonesia has driven TPIA to anticipate the high PE high domestic demand. Indonesia’s current polyethylene market demand is estimated around 1.4 million ton per annum and will continue to grow along with the country’s GDP. The total investment cost for the project is estimated US$350 million.
The completion of project is scheduled by the end of 2019 and commence operation at the beginning of 2020. The Company currently operates a 336 KTA of polyethylene plant, therefore, this new construction of 400KTA PE plant will bring total CAP’s PE production to 736 KTA.
TPIA, a subsidiary of PT Barito Pacific Tbk (IDX: BRTP), an integrated petrochemical company producing olefins and polyolefins.