SINGAPORE (ICIS)--Chandra Asri has raised Indonesian rupiah (Rp) 5,030bn ($378m) via a recently completed rights issue, to fund its ongoing capacity expansion project in Cilegon, a company source said on Wednesday.
The company’s capital expenditure projects are expected to cost around $1bn over the next three years, and will boost its overall capacity to 4.17m tonnes/year from 3.3m tonnes/year currently.
“All projects are expected to be completed within 2-3 [two to three] years,” the source from the company’s investor relations department said in an e-mailed response to ICIS queries.
These include the expansion of its butadiene (BD) plant from 100,000 tonnes/year currently to 137,000 tonnes/year, as well as the debottlenecking of its polypropylene (PP) plant, the source said.
Additionally, Chandra Asri is constructing a new 400,000 tonne/year polyethylene (PE) plant, which will boost its total PE capacity to 736,000 tonnes/year, the source said.
The company is also undertaking a furnace revamp project which will boost its ethylene capacity to 900,000 tonnes/year from 860,000 tonnes/year currently, according to the source.
Chandar Asri's latest cracker expansion was completed in late 2015.
The company’s capacity expansion plans also include a new 130,000 tonne/year methyl tertiary butyl ether (MTBE) unit and a 43,000 tonnes/year butene-1 plant, the source said.
“We have also embarked a feasibility study to construct and operate a new multi-billion dollar world-scale complex which will comprise a 1m tonne/year ethylene cracker and various downstream derivatives,” the company source said.
The company’s plan for the second naphtha cracker is expected to cost between $4bn-5bn, according to an earlier note from ratings firm Moody’s Investors Service.
Chandra Asri is the largest petrochemical player in Indonesia, with a market share of 52% in olefin supply, 24% of PE supply, 29% in PP supply and 100% of styrene monomer (SM) supply, said Ke Yan, an analyst at investment research and analysis firm Smartkarma.
The company has a production capacity of 860,000 tonnes/year for ethylene, 470,000 tonnes/year for propylene, 400,000 tonnes/year for pyrolysis gas (pygas), 315,000 tonnes/year for mixed C4, as well as 336,000 tonnes/year and 480,000 tonnes/year for PE and PP, respectively.
Chandra Asri also has an annual styrene monomer production capacity of 340,000 tonnes/year and the capacity to produce 100,000 tonnes/year of butadiene.
($1 = Rp13,260)