PT Chandra Asri Petrochemical Tbk (Chandra Asri) and Indonesia Investment Authority (INA) have signed a Memorandum of Understanding (MoU) to collaboratively develop a world-scale chlor-alkali plant in Indonesia.
Once operational, the plant will produce more than 400,000 metric tons per annum of caustic soda (also known as sodium hydroxide), and 500,000 metric tons per annum of ethylene dichloride (EDC).
As part of the accelerated development of this plant, Chandra Asri has signed a basic engineering and licensing agreement with Asahi Kasei Corporation (AKC) from Japan.
Caustic soda is a critical input for Indonesia’s growing downstream industries, such as alumina extraction, nickel extraction, water treatment, textile production, pulp and paper production, as well as soap and detergent production. Ethylene Dichloride is a core intermediary chemical input to produce polyvinyl chloride (PVC), which is widely used in numerous end-use applications including construction and packaging.
This investment clearly supports Indonesia’s ambitions, to position itself in the global electric vehicle value chain to meet the growing needs for caustic soda, as growing worldwide electric vehicle adoption will drive demand for nickel, a key battery material.
