APIC ’11: Indonesia’s Panasia group to diversify, expand

FUKUOKA, Japan (ICIS)--Indonesia’s Panasia group is planning to expand its spun-yarn spinning capacity by an additional 100,000 spindles by the end of 2011 on the back of growing demand in the country, a company executive said on Wednesday.

The group is a major buyer of purified terephthalic acid (PTA) and monoethylene glycol (MEG) from the region, which it uses to make polyester fibre.

The integrated company sells half of its polyester product capacity domestically and exports the rest to the European and American markets.

The company’s polymerisation plants produce approximately 80,000 tonnes/year of yarns and fibres.

“As a group we are diversifying into non-textile divisions,” said Joshua Lim, president director of Panasia group, at the sidelines of the Asia Petrochemical Industry Conference 2011, the region’s biggest industry event to be held in Fukuoka, Japan, on 26-27 May.

Lim said Panasia is keen in exploring opportunities in essential oils, which is used to manufacture perfumes, as well as setting up its own 30-megawatt power plant for captive use. The group is also looking into mining opportunities, he added.

However, he did not disclose further details such as the size of these investments.

Lim said he expects the growth of Asia's petrochemical sector to remain strong on the back of the growing economies in China and India.

“Indonesia’s economy is also booming. The country will maintain its growth,” he added.

Indonesia’s full-year 2010 GDP growth was 6.1%, Reuters reported, quoting the country’s statistics bureau.

Lim said there is plenty of scope for the petrochemical sector to grow in Indonesia, provided the global markets and the domestic situation remain conducive to accommodate such growth.