Apr 21, 2011

Titan to build US$5 bio ethylene facility

Honam Petrochemical Corporation, South Korean petrochemical company, is ready to provide financing to PT Titan Kimia Nusantara Tbk (FPNI) in a bid to construct ethylene maker facility that requires a total cost of US$3 billion-US$5 billion.
"The feasibility study commences in the second half of this year. The construction will need 3 years-4 years," said Titan Kimia President Director David Tsunghung Chao yesterday as quoted by Investor Daily today.
Honam will participate 70% of the total cost and the remaining will be bankrolled by Korea Eximbank's loan facility.
Honam currently owns 72.32% shareholding in Titan International Corp Sdn Bhd, parent of Titan Kimia with 95.31% stake ownership.
Titan Kimia last year suffered a net loss of US$22.81 million or Rp196 billion, due to the increasing price of ethylene materials, driven by the increase in global oil price.

Disclosure: No position at the stock mentioned above.

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