Lotte Group has signed a 12-year term loan facility of $2.4 billion with the Export-Import Bank of Korea, Korea Trade Insurance Corporation and other commercial banks to fund the development of its Integrated Petrochemical Facility, also known as the LOTTE Chemical Indonesia New Ethylene (LINE)...
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Lotte Group has signed a 12-year term loan facility of $2.4 billion with the Export-Import Bank of Korea, Korea Trade Insurance Corporation and other commercial banks to fund the development of its Integrated Petrochemical Facility, also known as the LOTTE Chemical Indonesia New Ethylene (LINE) Project.
Subsidiary PT LOTTE Chemical Indonesia - in which LOTTE Chemical Titan holds an effective equity interest of 51% - is the owner of the LINE Project. LOTTE Chemical Corporation, which holds the remaining 49%, is the guarantor of the loan facility.
The LINE Project includes the development of a cracker plant that will use naphtha and liquefied petroleum gas as its feedstock to produce 1 million tonnes per year of ethylene, and 520,000 tonnes of propylene, and other additional products. It is expected to reach full commercial operation in 2025.
Upon completion, the production capacity of Lotte Group will increase by 65% to 5,878 kilo tonnes per annum from its existing capacity of 3,568 KTA. As Indonesia is a net importer of petrochemical products, the project will enable the company to capitalise on the anticipated increase in demand.
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