PT.LOTTE CHEMICAL INDONESIA NEW ETHYLENE (LINE)

LINE Project

LOTTE Chemical Titan Holding Berhad’s (“LCT”) strategic expansion initiative to develop an Integrated Petrochemical Facility (“IPF”) known as the LOTTE Chemical Indonesia New Ethylene Project or the LINE Project, through its subsidiary, PT LOTTE Chemical Indonesia (“LCI’) is aimed to increase the company’s production capacity and realise LCT’s vision to be a Top-Tier Petrochemical Company in Southeast Asia by 2024.


The RM18 billion joint venture project between LCT and LOTTE Chemical Corporation (“LCC”), Korea will develop a 1 million tonne per year naphtha cracker and other related downstream facilities in Merak, Cilegon, Banten Province, Indonesia.


The LINE Project is expected to be completed in 2023. With the completion of the LINE Project, the enlarged facility will provide enhanced operational efficiencies and significantly increase LCT’s production capacity through integration of the production process in LCT’s existing plants in Indonesia.


LCT believes that the LINE Project is an attractive business proposition due to Indonesia’s dependency on petrochemical imports from other Southeast Asia countries because of its insufficient domestic production. The country is also expected to remain a large net importer of polyolefins and the domestic plastic demand gap is expected to further widen following the rising population and healthy consumption growth.