JAKARTA (TheInsiderStories) – Manufacturer’ PT Chandra Asri Petrochemical Tbk (IDX: TPIA) seeks funds around Rp1 trillion (US$70.17 million) from the bond market to strengthening the capital, the management announced today. In this year, the issuer plans to spend $65 million to build the petrochemical project in Cilegon, Banten.
Finance director, Andre Khor, in virtual conference, said the company is trying to manage the debt to improve the financial performance. Beside from the bond issuances, last month, the producer has signed a trading facility deal worth of $60 million with DBS Bank to increase petrochemical products export growth.
Early of this year, Chandra Asri has merged with its subsidiary, PT Styrindo Mono Indonesia with combined assets around$3.62 billion. Styrindo was founded in 1991 and focuses on the manufacturing and wholesale trading industries. The unit is the only styrene monomer manufacturer in Indonesia with a production capacity of 340 KTA.
Currently, the largest shareholder of the issuer owned by PT Barito Pacific Tbk (IDX: BRPT) of 41.88 percent, SCG Chemicals Co. Ltd., 30.57 percent, Prajogo Pangestu 15.07 percent, Marigold Resources Pte. Ltd., amounted to 4.75 percent, and public 7.73 percent.
Chandra Asri is the largest integrated petrochemical producer in Indonesia and produce naphtha cracker into olefin (ethylene, propylene), pygas, mixed C4, styrene monomer, butadien, MTBE/Butene-1, and polyolefin, which are key raw materials used to produce high value-added durable products used daily. The product applications include masks, personal protective equipment and hygienic packaging for the domestic industry.
The company also has started the operating of the Methyl Tert-butyl Ether and B1 plants. President Director of the company, Erwin Ciputra, stated, with the operation of this new factory, he hope that the government’ goal to reduces import by 35 percent in 2022 can be achieved.
The new factories were built with investment costs of $130.5 million and have a capacity of 127,000 tons per year. While the Butene-1 plant will have a capacity of 43,000 tons per year. The plans will absorb Raffinate-1 to be used as raw material. With the operation of these two new factories, Chandra Asri’ production capacity could increase to 4.2 million tons from the current 3.9 million tons.
After operate four new factories in this year, the producer will also complete the construction of the CAP 2 factory in June 2024. The producer will allocate around $5 billion to build the factory and looking strategic investors to build the plants. After the second plant is operates, the company production capacity can increase to 8 million tons.
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