With the expansion we predict there will be a hike in exports."Jakarta (ANTARA News) - Japanese chemical company PT Asahi Chemical plans to invest US$400 million to increase its production capacity.
"The US$300 to US$400 million investment would be used for expanding the plant," the company`s director, Eddy Sutanto, said here on Wednesday.
He said the plant capacity would be increased for the production of caustic soda and polyvinyl chloride (PVC). The plan is expected to be started at the end of 2013.
Right now the plan is still awaiting approval from shareholders, he said.
The capacity hike plan will be carried out by expanding the plant in Cilegon, West Java.
With the increasing plant capacity the company expects production of caustic soda and PVC could be increased from 500,000 tons and 250,000 tons respectively to 700,000 tons and 600,000 tons, he said.
The plan is aimed at "meeting the needs of basic chemicals such as for soap, plastic, cloth, textile production and domestic as well as export markets."
Right now 80 percent of PT Asahimmas` products are used as raw materials in domestic industries while the rest is exported.
"With the expansion we predict there will be a hike in exports," he said.
The project is expected to be completed in two to two and a half years` time and so the plant is expected to start production at the end of 2015 or early in 2016.
In connection with the plan he said he met with the minister of industry on Wednesday to discuss it.
(Reporting by Anita Permata Dewi/Uu.A064/H-YH)
Editor: Priyambodo RH
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