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25 February 2011
South Korean conglomerate Lotte Group is considering new petrochemical ventures in southeast Asia, including an investment in Indonesia that may top $5bn (€3.6bn), a company official said on Friday.
“We are considering a cracker and its downstream units in Indonesia but we are still studying what kind of downstream plants to build,” said the official who declined to be named.
Lotte Group chairman Shin Dong-bin met with Indonesian government officials early this week to discuss the company’s interest to invest in the southeast Asian country, he added.
“The investment in Indonesia could change from $3bn to $5bn, or even slightly more,” the official said.
Lotte Group has also started a feasibility study for investments in other countries in southeast Asia, including Vietnam and Malaysia. The study was expected to be completed within this year, the official said.
“The study was started since the acquisition of the Titan business [in Malaysia]… It is at a very early stage and we need to do country risk analyses before we make a decision,” the Lotte official said.
The Lotte Group currently has a presence in Indonesia via its subsidiary, Honam Petrochemicals, which acquired Malaysia’s polyolefin major Titan Chemicals in July 2010.
Included in the acquisition was Titan’s Indonesian subsidiary - PT Titan Petrokimia Nusantara (TPN), which has a polyethylene (PE) production capacity of 450,000 tonnes/year.
TPN has two 125,000 tonne/year high density polyethylene/linear low density PE swing plants and a third swing plant with a 200,000 tonne/year capacity in Indonesia.
“We may need a local partner for investments in Vietnam or Indonesia. The new investments may not be 100% done through Titan,” the official said.
Lotte Group has yet to decide on location of any new projects in the region and on the exact cost or configurations of any new petrochemical-related investments, he said.
“It depends on what kind of infrastructure they can offer, so we need further studies before we can finalise our investment,” the official added.
Honam produces synthetic resins, basic petrochemicals, basic chemicals and performance polymers and has an ethylene capacity of 1.75m tonnes/year. It operates a 750,000 tonne/year cracker in Yeosu and a 1m tonne/year cracker in Daesan.
Titan, on the other hand, is an integrated olefins and polyolefins producer, running a 285,000 tonne/year No 1 cracker and a 435,000 tonne/year No 2 cracker in Pasir Gudang, Malaysia.
Source: www.icis.com
Keywords: Lotte Group, Shin Dong-bin, Indonesia, Vietnam, Malaysia
South Korean conglomerate Lotte Group is considering new petrochemical ventures in southeast Asia, including an investment in Indonesia that may top $5bn (€3.6bn), a company official said on Friday.
“We are considering a cracker and its downstream units in Indonesia but we are still studying what kind of downstream plants to build,” said the official who declined to be named.
Lotte Group chairman Shin Dong-bin met with Indonesian government officials early this week to discuss the company’s interest to invest in the southeast Asian country, he added.
“The investment in Indonesia could change from $3bn to $5bn, or even slightly more,” the official said.
Lotte Group has also started a feasibility study for investments in other countries in southeast Asia, including Vietnam and Malaysia. The study was expected to be completed within this year, the official said.
“The study was started since the acquisition of the Titan business [in Malaysia]… It is at a very early stage and we need to do country risk analyses before we make a decision,” the Lotte official said.
The Lotte Group currently has a presence in Indonesia via its subsidiary, Honam Petrochemicals, which acquired Malaysia’s polyolefin major Titan Chemicals in July 2010.
Included in the acquisition was Titan’s Indonesian subsidiary - PT Titan Petrokimia Nusantara (TPN), which has a polyethylene (PE) production capacity of 450,000 tonnes/year.
TPN has two 125,000 tonne/year high density polyethylene/linear low density PE swing plants and a third swing plant with a 200,000 tonne/year capacity in Indonesia.
“We may need a local partner for investments in Vietnam or Indonesia. The new investments may not be 100% done through Titan,” the official said.
Lotte Group has yet to decide on location of any new projects in the region and on the exact cost or configurations of any new petrochemical-related investments, he said.
“It depends on what kind of infrastructure they can offer, so we need further studies before we can finalise our investment,” the official added.
Honam produces synthetic resins, basic petrochemicals, basic chemicals and performance polymers and has an ethylene capacity of 1.75m tonnes/year. It operates a 750,000 tonne/year cracker in Yeosu and a 1m tonne/year cracker in Daesan.
Titan, on the other hand, is an integrated olefins and polyolefins producer, running a 285,000 tonne/year No 1 cracker and a 435,000 tonne/year No 2 cracker in Pasir Gudang, Malaysia.
Source: www.icis.com
Keywords: Lotte Group, Shin Dong-bin, Indonesia, Vietnam, Malaysia
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