Jun. 6, 2011

Toyo Engineering Korea Limited (Toyo-Korea), a Korean subsidiary of Toyo Engineering Corporation (President and CEO Yutaka Yamada) has been awarded a contract to build a butadiene plant with a capability of 100,000 tons per year. This is the first plant in Indonesia, and will be constructed at Cilegon in West Java by PT Petrokimia Butadiene Indonesia, a subsidiary of PT Chandra Asri Petrochemical, the country’s largest petrochemical company. Butadiene will be utilized as feedstock to produce synthetic rubber, the primary raw material used to meet the rapidly growing demand for automotive tires. Raw material stock will be supplied by the adjacent 600,000 ton/year capacity ethylene plant (constructed by TOYO in 1995) owned and operated by Chandra Asri.
Toyo-Korea will execute the project under an EPC turnkey contract covering from engineering to construction and commissioning based on Lummus/BASF technology. The client will invest approximately US$110 million into the plant project, which is scheduled for completion in 2013.

TOYO has executed 30 projects in Indonesia since the company was awarded a contract for a urea plant in 1971. In the summer of 2010 the company completed the propylene plant at Balongan Refinery for PT PERTAMINA, Indonesia’s state-owned oil company. Thanks to these successful projects, Toyo-Korea has successfully eclipsed European and Korean competitors to secure this latest contract. TOYO will work to enhance its business activities in Indonesia where active capital investment is expected to continue.

Project Outline

Client PT Petrokimia Butadiene Indonesia
Contractor Toyo Engineering Korea Limited (Toyo-Korea)
Plant and Facilities 100,000 t/y butadiene production plant
Location Cilegon, West Java, Indonesia
License Lummus/BASF technology
Scope of Work Engineering, procurement, construction and commissioning in lump sum (EPC/LS contract)
Completion scheduled 2013
Client's investment Approximately US$110 million

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