JAKARTA (RambuEnergy.com) – A synthetic rubber processing factory being developed by PT Synthetic Rubber Indonesia, a joint venture of Indonesia’s Chandra Asri Petrochemical and French tyre maker Michelin, is scheduled to begin commercial operation in second quarter of 2018, company corporate secretary Suryandi said on Monday (Nov 6).
The JV firm invested US$570 million million to develop the plant, with a target to produce 120,000 tonnes of synthetic butadiene rubber and solution sytrene butadiene rubber every year. Globally, Michelin will operate three synthetic rubber plant once this project is completed.
Shareholding composition of the joint venture is Michelin and PT Petrokimia Butadiene Indonesia (PBI), a subsidiary of Chandra Asri, by 55% and 45% respectively.
The plant construction is planned to begin in early 2015, with completion. Furthermore, SRI will produce Polybutadiene Rubber (PBR) with Neodymium Catalyst and Solution Styrene Butadiene Rubber (SSBR); both are utilized as feedstocks for the production of environmentally friendly tires.
All feedstock of SRI plant will be sourced from Butadiene which is produced by PBI. However, to meet the needs of Mixed C4 as feedstock to produce Butadiene, management of CAP will increase the production of Ethylene, Propylene, Py-Gas, Mixed C4, by adding production facility of Naphtha Cracker (Naphtha Cracker expansion).
Chandra Asri has said the construction of SRI plant is a form of commitment by CAP and its Subsidiaries to increase the value chain of petrochemical products which are produced by the Company and to further support the realization of an integrated petrochemical industry in Indonesia. This way, this project will reduce the dependence of import of feedstock as well as to support the national economy.
Barito Pacific shares buyback
Separately, PT Barito Pacific Tbk (IDX:BRPT) said it sets aside Rp200 billion to buy back up to 100 million company shars, equals to 0.72 per cent of the company’s outstanding shares. The maximum shares price to be bought back is Rp200 per share. The buyback program will be carried out from December 15 to June 14, 2018. The company has appointed Henan Putihrai as the brokerage firm to execute the buyback program.
Currently, the company’s shares are hovering at Rp2,070 per share. Currently, the public holds 30.76 per cent of Barito Pacific shares, while founder Prajogo Pangestu holds 69.23 per cent. (*)