Chandra Asri to licence polyethylene-technology from Univation for new polyethylene plant in Banten

17-Sep-16

Chandra Asri Petrochemical Tbk (CAP) has signed an agreement with US based Univation Technologies for a new 400KTA capacity Polyethylene at its integrated complex in Cilegon, Banten. The plant will be based on the latest UNIPOL^TM PE Process. The agreement covers process design package including the license to produce Linear Low-Density Polyethylene (LLDPE), HighDensity Polyethylene (HDPE) and Metallocene LLDPE (MLLDPE). The final decision on the investment is expected to be taken by mid-2017. Presently, CAP is doing the process design package (PDP).

After implementation of the expansion its Naphtha Cracker to a capacity of 860KTA, an increase of 43%, CAP has evaluated various PE technologies and finally selected Univation Technologies for a new plant. The excess Ethylene product will add value to CAP. The shortfall in the domestic supply of the Polyethylene products is estimated to be 1.4 million TPA will be supplemented with the additional production of Polyethylene products from the new plant of CAP. The Indonesia’s PE domestic market demand is expected to grow with the country’s GDP. The additional capacity generation will expand the market share of CAP contributing to the growth of Indonesia.

CAP is Indonesia’s largest integrated petrochemical company producing olefins and polyolefins. It is the only domestic producer of styrene monomer and butadiene. In addition, CAP is the only producer operating a naphtha cracker. Plastic raw materials, and chemicals used in packaging products, pipes, automotive, electronics are some of the product manufactured by CAP.