Chandra Asri breaks ground for new polyethylene plant

PT Chandra Asri Petrochemical Tbk (CAP; Jakarta, Indonesia; www.chandra-asri.com) commenced the groundbreaking for a new polyethylene (PE) plant, which is planned to have capacity to produce 400,000 metric tons per year (m.t./yr). The groundbreaking ceremony took place at CAP’s integrated petrochemical complex in Cilegon, Banten, Indonesia, where the new plant will be constructed. The new PE plant will produce high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE) and metallocene LLDPE. The rapid growth of the plastics and packaging industries in Indonesia has driven CAP to anticipate high PE domestic demand. The total investment cost for the project is estimated to be around $350 million. The completion of the project is scheduled by the end of 2019, with operations commencing in early 2020. The company currently operates a PE plant with a capacity of 336,000 m.t./yr, so this new plant brings CAP’s total PE capacity to 736,000 m.t./yr.