Lotte Chemical to Build Petrochemical Plant

Lotte Chemical to Build Petrochemical Complex in Cilegon Through its subsidiary PT LOTTE Chemical Indonesia ("LCI"), LOTTE Chemical Titan Holding Berhad ("LCT") is pursuing a strategic expansion initiative to develop an Integrated Petrochemical Facility ("IPF"), known as the LOTTE Chemical Indonesia New Ethylene Project or LINE Project, aimed at increasing the company's production capacity and realizing LCT's vision of becoming a first-class petrochemical company in Southeast Asia. The joint venture project worth USD 3.95 billion between LCT and LOTTE Chemical Corporation ("LCC") will develop a naphtha cracker processing 1 million tonnes annually and related production facilities in Merak, Cilegon, located in Banten Province, Indonesia. Upon completion of the LINE Project, the expanded facility will provide improved operational efficiencies through integration of production processes at LCT's existing facilities in Indonesia and will significantly increase LCT's production capacity. LCT believes the LINE Project represents an attractive business proposition given Indonesia's need to import petrochemicals from other Southeast Asian countries due to insufficient domestic production. The country is expected to remain a major net polyolefin importer, and the local plastic demand gap is anticipated to widen further following population growth and rising healthy consumption. Source