PERTAMINA BUILD US$ 80 MILLION TIRE COMPONENT PLANT

[CATEGORY: MANUFACTURE]

PT Pertamina (Persero) has agreed with the Spanish energy company, Repsol S.A., to build a processing plant treated distillate aromatic extract (TDAE) or tire raw materials.

The two companies have signed a head of agreement last week. "It will be built in the area of Cilacap refinery," Pertamina spokesman, Wianda A. Pusponegoro.

The plan, Wianda explained, Pertamina-Repsol will establish a production facility with a capacity of 60 thousand tons per year. They will create a joint venture to realize a plan Plant TDAE in Cilacap that. It is estimated that construction of the plant required an investment of US$ 80 million (more than Rp 1 trihun).

Pertamina also signed a memorandum of understanding with PT Pura Barutama to work on the treatment plant with a capacity of 50 thousand tons per year. But the plan was never heard from again, until Pertamina signed a similar agreement with Repsol last week.

Construction of the plant is expected to take 18-24 months. Thus, "The target, at least, the JV is already there at the beginning of 2017," said Wianda.

Pertamina is targeting the plant can be in commercial operation in 2019.

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