SCG Chemicals and Barito Pacific seek US$500 mln to expand ethylene capacity at Chandra Asri

22-Nov-11

SCG Chemicals and Barito Pacific are seeking US$500 mln (Bt15.6 bln) to expand ethylene capacity at Chandra Asri Perochemical (CAP) to 800,000-1000,000 tpa from the current 550,000 tpa. Production capacity for polyethylene will be increased from 340,000 tpa, polypropylene from 480,000 tonss and styrene monomer from 320,000tpa. CAP is Indonesia's largest petrochemical company in which Barito owns the largest shareholding at 70%. SCG Chemicals, the biggest unit of Siam Cement Group, Thailand's largest industrial conglomerate, in September acquired 30% of CAP for US$442 mln. The two are considering a public offering in the Indonesian stock market and borrowing from banks with the expectation of making a decision early next year so that the increased capacity can come on stream in 2013.