Ferrostaal to build $2b plant in Papua

ferrostaalFerrostaal GmbH, a German supplier of industrial tools and machinery, has said it will build a petrochemical factory in West Papua, Indonesia, at an investment volume of $2 billion.

The project, which involves the construction of plants and supporting facilities to produce methanol propylene and polypropylene from natural gas, is expected to be completed in 2019, the company said in a statement.

The Indonesian government has agreed to allocate domestically produced gas to the Ferrostaal plant, the statement said.

According to Ferrostaal’s member of the executive board, Klaus Lesker, Indonesia could reduce petrochemical imports by up to $600 million annually when the facilities are fully operational. He added that the project would involve the transfer of high technology and significant job creation.

“It will open up jobs for around 3,000 people, whether directly or indirectly,” Lesker said.

Once the facilities are complete, they will be able to produce 400,000 tonnes of polypropylene per year. They will also produce synthetic materials and some gasoline and liquid gas, which will be sold domestically.

Germany is Indonesia’s biggest trading partner in Europe. Indonesian exports to German last year totaled $2.59 billion, while Germany’s exports to Indonesia stood at $3.3 billion. Realised investment from Germany to Indonesia in 2012 was $75.8 million.

 

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Ferrostaal GmbH, a German supplier of industrial tools and machinery, has said it will build a petrochemical factory in West Papua, Indonesia, at an investment volume of $2 billion. The project, which involves the construction of plants and supporting facilities to produce methanol propylene and polypropylene from natural gas, is expected to be completed in 2019, the company said in a statement. The Indonesian government has agreed to allocate domestically produced gas to the Ferrostaal plant, the statement said. According to Ferrostaal's member of the executive board, Klaus Lesker, Indonesia could reduce petrochemical imports by up to $600 million annually...

ferrostaalFerrostaal GmbH, a German supplier of industrial tools and machinery, has said it will build a petrochemical factory in West Papua, Indonesia, at an investment volume of $2 billion.

The project, which involves the construction of plants and supporting facilities to produce methanol propylene and polypropylene from natural gas, is expected to be completed in 2019, the company said in a statement.

The Indonesian government has agreed to allocate domestically produced gas to the Ferrostaal plant, the statement said.

According to Ferrostaal’s member of the executive board, Klaus Lesker, Indonesia could reduce petrochemical imports by up to $600 million annually when the facilities are fully operational. He added that the project would involve the transfer of high technology and significant job creation.

“It will open up jobs for around 3,000 people, whether directly or indirectly,” Lesker said.

Once the facilities are complete, they will be able to produce 400,000 tonnes of polypropylene per year. They will also produce synthetic materials and some gasoline and liquid gas, which will be sold domestically.

Germany is Indonesia’s biggest trading partner in Europe. Indonesian exports to German last year totaled $2.59 billion, while Germany’s exports to Indonesia stood at $3.3 billion. Realised investment from Germany to Indonesia in 2012 was $75.8 million.

 

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1 COMMENT

  1. As with investments in East Timor in the 1980s and 90s, caution needs to be exercised by investors in Papua, as noted at http://colonyWestPapua.info the territory is subject to UN obligations and its indigenous population should be exercising self-determination this decade. However the Ferrostaal project could be one which the transitional government may wish to support. Its the farming and open pit mining operations like Freeport that are seen as long term liabilities against the territory’s interests.

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