PT Petrokimia Butadiene Indonesia, a subsidiary of PT Chandra Asri Petrochemical is to start construction on the country’s first butadiene plant next week in Cilegon, Banten, with an anticipated investment outlay of US$110 mln. Toyo Engineering Korea Ltd has been awarded the tender to build the plant. Construction of the 100,000 tpa plant, to begin in May 2013, is expected to take around 23 months. Half the output, set to be licensed by the world’s largest chemical company, Germany-based BASF, will be sold domestically.
220,000 tons of crude butadiene (crude C4) will be supplied by Chandra Asri, while 30,000 tons will be imported. The company currently exports its entire production of crude C4 mainly to Japan, Korea and Thailand.