Lotte Chemical Titan Holding’s Indonesian subsidiary, PT Lotte Chemical Indonesia (LCI), has secured a 12-year loan facility worth $2.4bn to finance the development of its integrated petrochemical facility, also known as the Lotte Chemical Indonesia new ethylene project.
The loan was arranged with the Export-Import Bank of Korea, Korea Trade Insurance Corp, and other commercial banks. The lining project is expected to be completed in 2025 and will provide synergies to Lotte Chemical Titan’s three existing standalone polyethylene plants, reducing transportation and logistics costs while contributing to higher operational and cost efficiencies.
Loan Facility Secured for Lotte Chemical Indonesia
LCI, which is 51% owned by Lotte Chemical Titan and 49% owned by Lotte Chemical, has secured a $2.4bn loan facility to finance the construction of the Lotte Chemical Indonesia new ethylene project. The project will expand LCT’s production capacity by 65% to 5,878 KTA from the current production capacity of 3,568 KTA. The loan was provided by the Export-Import Bank of Korea, Korea Trade Insurance Corp and other commercial banks.
Project on Track for Completion in 2025
LCT’s CEO, Park Hyun Chul, stated that construction of the project is progressing on schedule, with completion expected in 2025. The project includes the development of a cracker plant that will use naphtha and liquefied petroleum gas to produce, among other things, 1,000 kilo tonnes per annum (KTA) of ethylene and 520 KTA of propylene. The project is a strategic expansion for LCT, solidifying its position as a top-tier petrochemical company in Southeast Asia.
Synergistic Advantages for LCT
The line project will provide synergistic advantages to LCT’s three existing standalone polyethylene plants, contributing to higher operational and cost efficiencies by reducing transportation and logistics costs. The project will enable the group to capitalise on the anticipated increase in demand for petrochemical products in Indonesia, which is a net importer of such products. LCC is the guarantor of the loan facility.