S.Korea's Lotte Chemical to build $3.9 bln petchem project in Indonesia

The logo of Lotte Chemical is seen at its office building in Seoul
The logo of Lotte Chemical is seen at its office building in Seoul, South Korea, October 11, 2017. REUTERS/Kim Hong-Ji

SEOUL, Jan 7 (Reuters) - South Korea's Lotte Chemical Corp (011170.KS) said on Friday it plans to build a large-scale petrochemical complex in Indonesia worth $3.9 billion in investment.

The project's commercial production target is 2025, and is aiming to generate annual revenue of about $2.06 billion, the company said in a statement.

The complex, which will also involve its subsidiary Lotte Chemical Titan (LOTT.KL), will be located in Banten province, and plans to annually produce 1 million tonnes of ethylene, 520,000 tonnes of propylene, 250,000 tons of polypropylene, as well as downstream products, Lotte Chemical said.

Lotte Chemical has signed a memorandum of understanding with Indonesian authorities, and entered into agreement with builders Lotte Engineering & Construction and Hyundai Engineering for the construction, it added.

($1 = 1,202.3800 won)

Reporting by Joyce Lee; Editing by Kim Coghill

Our Standards: The Thomson Reuters Trust Principles.