Lotte Chemical Titan mulls US$4 billion upstream plant in Cilegon, Banten

24-May-15

Lotte Chemical Titan, a subsidiary of the South Korean Lotte Group, is studying the possibility of building a US$4 billion upstream plant to reduce imports of raw materials, as per The Jakarta Post. Lotte Chemical Titan president director Peter Yoon said the new plant would be built on 40 hectares near its existing plant in Cilegon, Banten. Lotte Chemical, which currently has a production capacity of 450,000 tpa of polyethylene, expects the upstream plant to boost production capacity to 1 million tons by creating ethylene. Around 40% of the total investment needed for the new plant would be taken from the company’s internal cash, while the rest would be from bank loans, Yoon said, adding that all investors would be from South Korea. The company is in the process of negotiating price with the land owner, date when construction is to begin remains undecided. Construction of the project is expected to take about three years.