【Haichuan Chemical Project Updates】62.4 billion Thai baht for TKP Petrochemical’s integrated refining and chemical complex in North Sumatra, Indonesia

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The 62.4 billion Thai Baht petrochemical integration project in North Sumatra, Indonesia: On the evening of June 26, two leading companies in the polyester filament industry, Tongkun Shares and Xinfengming, issued announcements stating their intention to launch the petrochemical integration project of Thai Baht Petrochemicals (Indonesia) Ltd. in North Sumatra, Indonesia. It is reported that the total investment in this project amounts to 8.624 billion US dollars, which is equivalent to 62.409 billion yuan. Project Name: PT Tekun Petrochemical (Indonesia) Ltd.’s Integrated Refining and Chemicals Project in North Kalimantan, Indonesia. Contractor: PT Tekun Petrochemical (Indonesia) Ltd. Project Location and Land Use: The project is located in the North Kalimantan Industrial Park in North Kalimantan Province, Indonesia; it covers an area of 898 hectares, of which 773 hectares are allocated for the refining and chemicals facilities and 125 hectares for photovoltaic power generation. Construction period: 4 years. Total project investment: The total amount required for financing the project, including value-added tax (the approved total investment), amounts to $862,371 million. This includes $796,040 million in investment costs and value-added tax, $43,661 million in funds required for the construction period, and $22,670 million as working capital – which represents 30% of the total working capital, or the portion of working capital that comes from own funds. Sources of project funding: The investors shall raise a total of $261,482 million on a proportional basis, while financing through domestic and foreign banks will amount to $600,889 million. The main products of the project include: 4.3 million tons per year of refined oil products, 4.85 million tons per year of p-xylene (PX), 520,000 tons per year of acetic acid, 1.7 million tons per year of benzene, 450,000 tons per year of sulfur, 700,000 tons per year of propane, 720,000 tons per year of n-butane, 500,000 tons per year of polyethylene FDPE, 370,000 tons per year of EVA (photovoltaic grade), and 240,000 tons per year of polypropylene, among others. Product market for the project: 4.67 million tons per year of products such as refined oil and sulfur are consumed by the Indonesian domestic market; 8.47 million tons per year of products such as p-xylene, acetic acid, benzene, and propane are consumed by the Chinese domestic market; while 1.18 million tons per year of products such as polyethylene, FDPE, EVA, and polypropylene are consumed by the Chinese, Indonesian, and ASEAN markets together. Upon completion of the project, the annual operating revenue will be $1,043,821 million, the annual after-tax profit will be $132,762 million, the after-tax internal rate of return will be 16.68%, and the after-tax payback period will be 9 years (including a 4-year construction period).