Engineering News

Mitsubishi to Build $1.5B Petrochem Plant in Indonesia
June 10, 2009

The Mitsubishi Group of Japan plans to build a petrochemical plant in Indonesia's East Kalimantan with an investment of US $1.5 billion.

The plant, to be built in Bontang, will have an annual capacity of 500,000 tons of coal gas-based petrochemical products, the Indonesian federation of chemical industries (FIKI) said.

FIKI chairman Hidayat Nyakman said the factory will use coal gasification technology from China to turn out coal gas as feedstock.

Mitsubishi already completed feasibility study and is now seeking land around 37 hectares needed to build the factory, Hidayat said.

East Kalimantan has been selected probably as it is one of the largest coal producing areas in the country, he was quoted as saying by the newspaper Investor Daily.

Source: Asia Pulse Pte Ltd

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