Indonesian Integrated Paraxylene And Ethylene Petrochemical Complex Receives USD 8.62 Billion Investment From Chinese Joint Venture

Chinese JV Of Two Chinese Polyester Fibre Manufacturers Is All Set To Launch A USD 8.62 Billion Petrochemical Complex In Indonesia

Tongkun Petrochemical Indonesia, a joint venture between 2 Chinese manufacturers of polyester fibre, has announced a new petrochemical complex world USD 8.6 billion which will be located in north Kalimantan, Indonesia.

The project will commence once the approval of the Chinese government has been received. Once operational, it will have an annual production capacity of 14.32 million metric tons of petrochemical products, of which 4.3 million metric tonnes will be refined oil, 4.85 million metric tonnes will be paraxylene, along with 500,000 million metric tonnes of polyethylene.

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Once operational, the project could yield an average of USD 10.4 billion annually in operating income as well as an average of USD 1.3 billion in after-tax profit.

Tongkun Petrochemical Indonesia shares a joint ownership by Hong Kong Huacan International Trading and Shanghai Qinghong Industrial for 90% and 10%, respectively.

The 90% shareholder is a collaboration between two Chinese companies from the Zhejiang province, Tongkun Group and Xinfengming Group, which are the leading manufacturer of polyester filament yarn and chemical fibres, respectively.

This new venture lines up with the Belt and Road initiative by China as it will be an important step in building cross-border value, industrial, and supply chains.

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According to the article by Procurement Resource, a joint collaboration between 2 Chinese companies has announced that they are waiting for government approval for their latest petrochemical complex in Indonesia.

The new complex worth USD 8.6 billion, will produce refined oil, paraxylene and polyethylene upon being operational. This collaboration goes hand in hand with China's Belt and Road initiative that aims to build cross-border value, industrial, and supply chains. Further details of the project have been mentioned in the article.