DUMAI, Indonesia – Madrid-based oil and gas firm Cepsa and Singaporean palm oil company Golden Agri-Resources inaugurated on Thursday a fatty alcohol plant in Indonesia in which they have invested around $357 million.
The plant, located in Dumai in Sumatra Island’s Riau province, is to provide direct employment to around 300 people and has a capacity of 200,000 Ktons of oleochemical products per year, of which 160,000 is fatty alcohol used to manufacture cleaning and hygiene products.
Moreover, it is expected to produce nearly 40,000 Ktons of fatty acids and glycerin, which is used for making plastics, adhesives, waxes and fragrances, among others.
The plant is to be managed by Sinarmas Cepsa, a joint venture between Cepsa and Sinar Mas Agribusiness and Food, a subsidiary of GAR.
Indonesian energy minister Airlangga Hartanto, Cepsa CEO Pedro Miro, Sinar Mas Agribusiness and Food CEO Franky O. Widjaja, Sinar Mas Cepsa Deputy CEO Jose Maria Solana, and Riao province governor Arsyadjuliandi Rachman were present at the inauguration, among others.
“We have the will to work increasingly more in the East, for demographic as well as economic reasons. Secondly, we want to keep progressively revaluing our portfolio, and putting more emphasis on chemistry,” Miro told EFE during the inauguration.
Besides direct contracts with firms, Sinarmas Cepsa is to allocate nearly half of its production to its plant in Genthin (Germany), with a capacity to produce 100,000 tons of surfactants, used in the manufacturing of detergents and other cleaning and personal hygiene products.
“We hope to have an annual turnover around $250 million,” said Solana on his part.
Fatty alcohol has an annual growth rate of 3.5 percent, said Solana, adding that in his opinion this will hold steady over the next few years, due to the increasing consumption of hygiene products and liquid-based detergents.