Honam Petrochemical Corp., the second-biggest petrochemical producer in Asia, intends to set up a petrochemical complex in Cilegon, a coastal industrial city in Banten province of Indonesia, with an investment of US$ 5 billion.
The South Korean company plans to produce 1 million tons of ethylene, 700,000 tons of monoethylene glycol, 600,000 tons of polypropylene and 550,000 tons of propylene annually at the new integrated plant.
The construction for the plant is expected to begin in the first quarter of 2013, which is likely to be completed by 2016.
Raw materials for the naphtha cracker would be sourced locally from Indonesian suppliers where possible, but the South Korean company may also import inputs owing to limited availability of the required resources in Indonesia.
Once the integrated plant becomes operational, it would greatly enhance Indonesia's domestic availability of petrochemicals.
Honam plans to supply around 80 percent of its production to the local market, leaving only one-fifth of its output for export.
South Korean Lotte Group has 57.2 percent stake in Honam, which has plants in South Korea and Malaysia. The Indonesian plant would make Honam the largest petrochemical company in Asia.
Fibre2fashion News Desk - India
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