Lotte Chemical to Construct Ethylene Project
The firm Lotte chemical announced the new project of constructing Ethylene petrochemical plants in Indonesia. The project is known as Lotte Chemical Indonesia New Ethylene (LINE). The new project will include installation a naphtha cracker and petrochemical plants to manufacture ethylene derivatives. The overall cost of the project is estimated to be around $3.5 billion. The project is estimated to start in 2020 and with targeted operational commencement by 2023. The naphtha cracker installation in the LINE project will also support the existing domestic polyethylene plants owned by Lotte chemical.
As per Shin Dong Bin, the chairman of Lotte Chemical, the success of new LINE project will act as a stepping stone for the group and will positively impact the firm’s plan to become one of the major petrochemical firms in South East Asia. The new Line project also serves as a chance to Lotte group for divesting from China.
The coming up project will accelerate the business in Indonesia and expand the derivatives industry. Indonesia imports petrochemical products that accounts to be around 50% of domestic demand. The new project will reduce the dependence on the imports, improving the trade balance. The new LINE project is expected to support the expansion of plastic fabrication industry and create new jobs.
The Lotte Group is present in the Indonesian market from 1993. The firm has 12 of its business lines operating in the country in various sectors such as, construction, distribution and chemical sector. And thus, the firm considers Indonesia as one of its significant market.
— Vasundhra Singh,
Assistant Research Executive,