APIC ’07: Tripolyta upgrade plans hit by shortage

18 May 2007 06:24  [Source: ICIS news]

TAIPEI (ICIS news)--Tripolyta can boost polypropylene (PP) capacity to 440,000 tonnes/year by debottlenecking its plant but is hampered by the shortage of feedstock supply in the country, a senior company official with Indonesia’s largest PP producer said.

“The investment [to reach] 440,000 tonnes/year is not that large. But to secure the propylene is more important,” said Jeanne Watulo, vice president and chief operating officer of Tripolyta.

She spoke to ICIS news at the two-day Asia Petrochemical Industry Conference (APIC) in Taipei, which ends on Friday.

Indonesia’s sole cracker Chandra Asri supplies two-thirds of the propylene (C3) feedstock that Tripolyta needs for its 360,000 tonne/year PP plant in Merak, West Java. Tripolyta imports the balance.

The country currently suffers from an olefins deficit, making downstream polyolefins short of supply as well.

The two other Indonesian PP producers, Polytama Propindo and Pertamina, produce about 240,000 tonnes/year and 45,000 tonnes/year respectively.

Domestic demand this year, however, was estimated to be about 780,000 tonnes, said Watulo.

Even after Chandra Asri debottlenecks its cracker, scheduled in the late third quarter or early fourth quarter this year, it can only supply an additional 30,000 tonnes/year of C3 to Tripolyta.

In order to meet its expansion plans, Tripolyta will need another 50,000 tonnes/year of the feedstock.

“We need security of the C3 [to expand]. That will be key,” said Watulo.

Meanwhile, a marriage between Tripolyta and Chandra Asri might make sound economic sense but congratulations were not yet in order, she said, when asked to comment on speculation the two may merge.

“We are one of the largest non-integrated players and we share common shareholders. It makes business sense for us to be consolidated,” she said.

“But whether it’ll happen or not happen, I don’t know.”

By: Jeanne Lim
+65 6780 4359

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