Chandra Asri to build butadiene plant

Antara News, Monday, December 20, 2010

Jakarta (ANTARA News) - PT Petrokimia Butadiene Indonesia (PBI), a subsidiary of petrochemical producer PT Chandra Asri, will soon build a butadiene plant, the first of its kind in Indonesia.

"We have set aside US$100 million to build a (butadiene) plant with a capacity of 100 thousand tons per year," PT Petrokimia Butadiene Indonesia Director Suhat Miyarso said on Sunday.

The plant will be built on 40,000 square meters of land in the PT Chandra Asri factory compound in Cilegon, Banten province, he said.

"We have secured a license from BASF to produce the first butadiene in Indonesia," he said.

The fund will entirely originate from PT Chandra Asri`s internal cash, he said.

"We are currently preparing a bidding process to decide an EPC contractor," he said.

He said PT Petrokimia Butadiene Indonesia has extended an invitation to a number of companies in South Korea, Japan and Italy, to file a bid for the project until March 2011.

Hopefully, the company will announce a winning bidder for the construction of the plant in May 2011 and work on the construction of the project can be started in June 2011, he said.

It will take two years to complete the project and the plant is expected to start producing in the second quarter of 2013, he said.