Toyo Engineering wins work to expand Indonesia ethylene plant capacity

Toyo Engineering was awarded a contract from Chandra Asri Petrochemical in Indonesia, officials said on Tuesday. The agreement is designed to expand the capacity of an existing naphtha cracking plant located in the suburbs of Cilegon on the western tip of Java.

The aim of the project is to expand the ethylene capacity of the plant, which was built on the basis of Lummus technology in the 1990s. The expansion will take the plant from a current capacity of 600,000 tpy to 860,000 tpy.

Toyo said it was awarded the contract for detailed engineering, procurement, and construction based on the client’s appreciation of Toyo's experience in the construction of the existing plant. The client also appreciated various proposals submitted by Toyo through front-end engineering design (FEED) performed for this project since July 2012, which led to this award.

The project is scheduled for completion at the end of 2015.

The Indonesian market, with a population of approximately 240 million and rapid economic growth, offers expanding demand for petrochemical products, according to Toyo officials. Toyo says it is currently constructing Indonesia's first butadiene plant, also for Chandra Asri Petrochemical. Toyo officials say that project will soon be completed. 

Toyo is also implementing three large fertilizer projects on the islands of Kalimantan, Sumatra, and Sulawesi. 

With further ethylene downstream facilities being planned in Indonesia, Toyo says it will strive to actively expand its business in the country in collaboration with PT Inti Karya Persada Tehnik (IKPT), a Toyo group company.

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