PT Chandra Asri Petrochemical Tbk (CAP) has signed an agreement with Univation Tehnologies, LLC, located in the United States to use the UNIPOL(TM) PE Process for a new world scale 400KTA Polyethylene plant at its integrated Naptha Cracker complex in Cilegon, Banten. The agreement covers process design package, including license, to produce linear low density Polyethylene (LLDPE), High Density Polyethylene (HDPE) and Metallocene (MLLDPE). This commitment is a major milestone in CAP’s strategic plan to build a new Polyethylene (PE) plant with final investment decision expected by mid 2017 and now CAP is doing a process design package (PDP).
Currently, CAP operates its Polethylene plant in Cilegon with total capacity of 336KTA where one production train with the capacity of 200KTA is using UNIPOL™ PE Technology licensed from Univation Technologies to produce LLDPE and HDPE resins. Product applications for LLDPE and HDPE among others as blown film, rice bag, toy bottle lid, shopping bag, houseware, rope, tarpaulin, pipe, container box, etc.
Following the completion of its Naptha Cracker expansion by 43% to 860 KTA and in line with its strategy of pursuing vertical integration, CAP has reviewed various PE technologies and selected Univation Technologies for new plant to add value to its excess Ethlene product which is currently allocated for merchant sales.
A new PE plant will increase the source of domestic supply of Polyethene product which falls short of Indonesia’s PE market demand, estimated at 1.4 million TPA, and which continues to grow with the country’s GDP. In addition, a new PE plant will expand CAP’s petrochemical footprint and further contribute to the grow of Indonesia.