07 February 2013 10:01 [Source: ICIS news]
SINGAPORE (ICIS)--Indonesia’s Polytama Propindo plans to restart its idled 380,000 tonne/year polypropylene (PP) plant at Balongan, West Java in Indonesia on 10 February, a source close to the producer said on Thursday.
The restart is part of its tolling agreement with local plastics distribution company, Bukitmega Masabadi, the source added.
Under the tolling agreement, Polytama Propindo has to produce 15,000 tonnes/month of PP for Bukitmega from February to April, with the option to extend the contract until June, the source said.
The plant restart was originally scheduled for 6 February but it was pushed back because its feedstock supplier Pertamina could not supply propylene on time, the source said.
Local state-owned energy firm Pertamina has an agreement to supply 9,000 tonnes/month of propylene to Bukit Mega to produce PP at Polytama Propindo’s plant, he said.
Bukit Mega plans to source propylene in the spot market, through Pertamina, to cover its monthly shortfall of 6,000 tonnes from March to June, he added.
Polytama Propindo’s PP plant had been idle since September last year because of financial issues, he said.
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