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JGC expanding electrolysis plant from Indonesia JV

JGC Plant Solutions and JGC Indonesia, both wholly-owned subsidiaries of JGC Group, have been awarded a lump-sum turnkey contract for expansion of the electrolysis facilities at a joint venture plant owned by P.T. Asahimas Chemical.

The JV is comprised of Asahi Glass Co., Ltd. At 52.5%, P.T. Rodamas at 18%, Ableman Finance Ltd. with18% and Mitsubishi Corp. at 11.5%.

The contract calls for the engineering, procurement, and construction (EPC) work associated with expansion of the electrolysis capacity of P.T. Asahimas Chemical's chlor-alkali production plant in Cilegon, Banten, Indonesia.

The project, scheduled for completion in first quarter 2013, will boost the plant's production of caustic soda (sodium hydroxide) by 30% to around 500,000 tons/year, officials said.

Caustic soda is an alkali chemical with a wide range of industrial applications, including the production of rayon, soap, detergent, seasoning, pulp and paper.

Fueled by the rapid economic growth of Indonesia and other Asian countries, demand for caustic soda has been increasing significantly. P.T. Asahimas Chemical aims to meet this rising demand by expanding its facilities, it said.

JGC Plant Solutions is a Japanese subsidiary of JGC Corp. focused largely on the EPC business. Meanwhile, JGC Indonesia has more than 30 years of experience working on local projects as the regional arm of JGC, and the company also independently performs EPC for projects in Indonesia.

For this project, JGC Plant Solutions will be taking charge of the procurement work from outside Indonesia, while JGC Indonesia will perform the engineering, domestic procurement, and construction work.

The contract value was not disclosed.

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