Polytama to expand PP capacity

Indonesia's Polytama Propindo is expected to expand its polypropylene (PP) capacity from the current 260,000 t/yr to 300,000 t/yr by the end of this year.

The PP plant in Balongan utilises LyondellBasell's Spheripol technology. Polytama markets its PP under the brand name Masplene and mainly sells to the domestic market.

Polytama is expected to face increased competition in the domestic market from southeast Asian producers in the coming months. Malaysia's state-owned Petronas is raising production at its 900,000 t/yr PP plant in Pengerang with resins expected to hit the market in next year's first quarter. Hyosung will start up its 300,000 t/yr PP plant in Vietnam in this year's final quarter.

Southeast Asian producers like Petronas and Hyosung sell to Indonesia at zero duties because of the existing Association of Southeast Asian Nations free trade agreement.