Lotte Chemical Indonesia agrees 10-year ethylene supply deal with Asahimas Chemical

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By Mohi NarayanLotte Chemical Corp's KRX:011170 $3.9 billion large-scale petrochemical plant in Indonesia has signed a 10-year ethylene supply contract with PT Asahimas Chemical (ASC), the company said on Wednesday. "Lotte Chemical Indonesia (LCI) will supply ethylene, a key raw material in the petrochemical industry, to ASC for its production processes," it said without specifying the volume of supply.LCI, which houses a newly built 1 million ton-per-year naphtha cracker, was slated to begin commercial production in April but has delayed the start up to September or October due to poor margins, an industry source said.Trial runs were underway in early April, the source added. The companies entered into a 10-year long-term sales and purchase agreement for the supply of ethylene to bolster petrochemical supply chain in the country and to reduce dependency on imported raw materials, LCI said in the statement.

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