(Plastemart) -- PT Petrokimia Butadiene Indonesia, a subsidiary of PT Chandra Asri Petrochemical is to start construction on the country's first butadiene plant next week in Cilegon, Banten, with an anticipated investment outlay of USD 110 mln. Toyo Engineering Korea Ltd has been awarded the tender to build the plant. Construction of the 100 KTpa plant, to begin in May 2013, is expected to take around 23 months. Half the output, set to be licensed by the world's largest chemical company, Germany-based BASF, will be sold domestically.
220 KT of crude butadiene will be supplied by Chandra Asri, while 30 KT will be imported. The company currently exports its entire production of crude C4 mainly to Japan, Korea and Thailand.