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AMOCO, GAJAH TUNGGAL FORM JOINT VENTURE FOR PTA PLANT IN INDONESIA

 AMOCO, GAJAH TUNGGAL FORM JOINT VENTURE
 FOR PTA PLANT IN INDONESIA
 CHICAGO, July 27 /PRNewswire/ -- Amoco Chemical Company and the Gajah Tunggal Group today announced they have formed a joint venture to build a 350,000-ton-per-year purified terephthalic acid (PTA) plant in Merak, West Java, Indonesia.
 The proposed plant would use Amoco's proprietary technology to produce PTA, the preferred raw material for making polyester fiber, film and container resin.
 Amoco holds a 50 percent interest in the joint venture. An Indonesian investment group is led by the Gajah Tunggal Group, one of Indonesia's largest industrial and financial enterprises.
 Engineering activities for the plant have been underway for more than a year and the joint venture will seek bids from contractors later this summer. Construction is expected to begin in early 1993.
 Barclays Bank, Deutsche Bank, and the Long Term Credit Bank of Japan have been chosen to arrange financing for the joint venture project.
 Indonesia's large work force and active textile industry create a favorable environment for the new PTA plant, according to the joint venture participants.
 "The Gajah Tunggal Group is committed to investing in projects that bring the new technology and skills needed to improve Indonesia's competitive position in the global economy," said Sjamsul Nursalim, chairman of the Gajah Tunggal Group. "As one of the fastest growing countries in Southeast Asia, Indonesia is rapidly becoming a major producer of high-quality fabrics and clothing. We believe this additional PTA capacity will benefit the local polyester industry and the Indonesian economy."
 "As Indonesia represents one of the largest potential markets for polyester intermediates, Amoco is eager to increase activities here," said Ralph E. Anderson, president of Amoco Chemicals Far East Ltd. "This project supports Amoco's strategy of expanding its core businesses globally."
 PTA is Amoco's leading product. Amoco, the world's largest producer of PTA with wholly owned capacity of two million tons annually, is also a major investor in PTA joint ventures in Taiwan and Korea.
 "We've been a significant supplier to the Asian polyester market for many years," said Anderson. "We believe a PTA plant of this capacity is needed on Java by 1995 to provide Indonesia with a reliable supply of high-quality, competitively-priced PTA."
 Anderson noted that Amoco's joint venture operations in Asia have achieved a reputation for efficient and profitable operations by offering high-quality PTA at competitive costs. Amoco also has a record of outstanding achievement in the areas of safety and environmental management, he said.
 The Gajah Tunggal Group is active in manufacturing, financial services, natural resource development, retail and trading and real estate. A leader in rubber processing and manufacturing, the group has already moved upstream in other chemical processes such as the production of nylon polymers and filaments and nylon tire cord.
 Amoco Chemical Company is the chemical manufacturing and marketing subsidiary of Chicago-based Amoco Corporation (NYSE: AN).
 -0- 7/27/92
 /CONTACT: Patricia Wright, 312-856-5566, or Mary Milnamow, 312-856-6066; both of Amoco Corporation/
 (AN) CO: Amoco Corporation ST: Illinois IN: OIL SU:


KK -- CL004 -- 3459 07/27/92 11:11 EDT
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Publication:PR Newswire
Date:Jul 27, 1992
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