Sichuan Hebang Biotechnology Plans $800 Million Investment in Indonesian Chemical Plant
Jakarta. China-based chemical industry firm Sichuan Hebang Biotechnology Co Ltd intends to invest $800 million in constructing a factory within Indonesia's Java Integrated Industrial and Port Estate (JIIPE), following the acquisition deal of property in the industrial zone, an executive said on Thursday.
The proposed factory, situated on a 67-hectare site within JIIPE, is slated to manufacture chemical materials. An agreement for this project was formalized on August 28, according to Suresh Vembu, Director and Corporate Secretary of logistics and chemical distribution company Aneka Kimia Raya Corporindo (AKR).
JIIPE, situated in the East Java city of Surabaya, is developed and managed by Berkah Kawasan Manyar Sejahtera (BKMS), a subsidiary of AKR.
Additionally, the management of Sichuan Hebang has entered into a letter of intent with AKR for a joint venture entity within JIIPE, as indicated in a public filing by Suresh.
"According to the agreement, Hebang or its affiliates/subsidiaries will hold a 90 percent stake, while AKR or its affiliates/subsidiaries will hold the remaining 10 percent of the joint venture company responsible for the investment, factory construction, and project operations in Indonesia," wrote Suresh.
The land purchase deal was signed by Sichuan Hebang CEO Zeng Xiaoping and BKMS CEO Bambang Soetiono while the LoI on the joint venture company was signed by Zeng and AKR CEO Haryanto Adikoesoemo.
Sichuan Hebang aims to produce soda ash, ammonium chloride, and other products in the new Indonesian plant, which is projected to have a capacity of 600,000 tons a year.
Sichuan Hebang is engaged in the production and sale of chemical products for the agriculture industry. It also specializes in manufacturing specialty glass and carbon fibers for both domestic and export markets.Tags: