Lotte Chemical to build 3.9 billion USD petrochemical complex in Indonesia

Lotte Chemical and Indonesia’s government ink an MOU on the 3.9 billion USD petrochemical project in an online signing ceremony. (Photo courtesy of Lotte Chemical)

Jakarta (VNA) - Lotte Chemical Corp, the petrochemical unit of the Republic of Korean conglomerate Lotte Group, has announced its plan to build a petrochemical complex worth 3.9 billion USD in Indonesia.

In a statement released on January 7, the company said the project is expected to be put into operation in 2025 and generate annual revenue of about 2.06 billion USD.

The complex, which will also involve its subsidiary Lotte Chemical Titan, will be located in Banten province. It will have the capacity to produce 1 million tonnes of ethylene, 520,000 tonnes of propylene, 250,000 tons of polypropylene annually, Lotte Chemical said.

Lotte Chemical has signed a memorandum of understanding with Indonesian authorities, and entered into an agreement with builders Lotte Engineering & Construction and Hyundai Engineering for the construction, it added.

The Indonesian government will provide Lotte with lower tariffs and various tax benefits to implement the project, according to Lotte./.