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Lotte Chemical Titan divests 49% of stake in new ethylene project in Indonesia

October 30/2019

MOSCOW (MRC) -- Lotte Chemical Titan Holding Berhad has approved the proposed divestment of its 49% equity interest in a new ethylene project in Cilegon, Indonesia to its major shareholder, Lotte Chemical Corporation, reported NCT with reference to the Malaysian company's statement.

The divestment brings Lotte Chemical Titans parent company as a joint venture partner to help fund its MYR18 billion (USD4.3 billion) project, which is officially known as the Lotte Chemical Indonesia (LCI) New Ethylene Project or the "LINE Project".

The new integrated complex is expected to boost the companys production capacity by around 80%, with a naphtha cracker of 1 million tons/year ethylene capacity and other related downstream petrochemical facilities.

In December 2018, the company held a groundbreaking ceremony for the project.

As MRC informed earlier, Lotte Chemical Titan plans to add a naphtha-fed steam cracker with an ethylene production capacity of 1 million mt/year to its petrochemical facility in Merak of Banten province, Indonesia, by 2023, making it an integrated petrochemical complex.

The company currently has two high density polyethylene plants and one linear low density polyethylene plant at the same site, with a total production capacity of 450,000 mt/year. 

Ethylene is a feedstock for producing polyethylene (PE).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased.

Lotte Chemical Titan produces Malaysia's most comprehensive portfolio of olefins and polyolefins which contribute to the enhancement of everyday life. Lotte Chemical Titan's production site in Malaysia consists of eleven process facilities, two co-generation plants and three tank farms. They are located on 2 sites in Pasir Gudang and Tanjung Langsat in the state of Johor. In 2006, Lotte Chemical Titan acquired PT Lotte Chemical Titan Nusantara, Indonesias first and largest polyethylene plant in the country. This acquisition boosted the polyolefins capacity by approximately 50%, thus making the company one of the largest producers in South East Asia. Lotte Chemical Titan was acquired by Lotte Chemical Corp., forming part of the Lotte conglomerate of Korea, in 2010. The company thus became one of Lotte Chemical Corp.s largest overseas subsidiaries.
Author:Margaret Volkova
Tags:PE, propylene, LDPE, HDPE, ethylene, Lotte Chemical, Indonesia, Russia, South Korea.
Category:General News
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