Lotte Chemical Builds Petrochemical Plant in Cilegon
The LINE Project, also known as the LOTTE Chemical Indonesia New Ethylene Project, is a strategic expansion initiative by LOTTE Chemical Titan Holding Berhad (LCT) through its subsidiary, PT LOTTE Chemical Indonesia (LCI), to expand the company’s production capacity and achieve LCT’s vision of becoming a top-tier petrochemical company in Southeast Asia.
In Merak, Cilegon, Banten Province, Indonesia, a 1 million tonne per year naphtha cracker and other related downstream facilities will be built as part of a USD 3.95 billion joint venture project between LCT and LOTTE Chemical Corporation (“LCC”).
By integrating the production process into LCT’s current plants in Indonesia, the expanded facility will offer improved operational efficiencies and significantly increase LCT’s production capacity after the LINE Project is finished.
Due to Indonesia’s dependence on petrochemical imports from other Southeast Asian nations as a result of its insufficient domestic production, LCT thinks the LINE Project is a compelling business opportunity. The country is also expected to remain a large net importer of polyolefins and the domestic plastic demand gap is expected to further widen following the rising population and healthy consumption growth.
