1. Chemical

Ethylene Glycol Operations

The Ethylene glycol (EG) plant produces one of the two main raw materials required to produce polyester which is highly required by the Indonesian`s growing textile industries. 


The two Ethylene Glycol (EG) plants utilize a proprietary technology of Scientific Design Co. Inc., USA, and have a total production capacity of 216,000 tons. In 2017, the Company produced 219,366 tons of EG. About 17.4% of the MEG produced was consumed internally by the polyester division. The other 82.6% was sold to various polyester yarn and polyester fiber producers.


PT Polychem Indonesia Tbk. is the one and only producer of Mono Ethylene Glycol (MEG), Di Ethylene Glycol (DEG), Tri Ethylene Glycol (TEG) and various Ethoxylate (EOX) products in Indonesia.


The Sales of EG products reached USD 215.2 million in 2017. This sales of EG products contributed 60.6% to the total consolidated sales in 2017. In terms of value, 75.8% of the Company`s sales of EG was domestic and the remaining 24.2% was exports to various countries in Asia and North America.

Chemical Market Overview

Indonesia is currently still a net importer of MEG, so that with its total production capacity of only 216,000 tons per year and its location advantage, the Company has a very big opportunity in the domestic market.

In 2017, the demand of MEG in Asia is forecast to greatly exceed the total production capacity and the outlook of MEG industry, particularly in Asia, is still very promising in the long term.

The sales potential of the Company`s ethoxylate products is huge, both in the domestic market and in export markets. For that reason, the Company already increased its ethoxylate production capacity to more than 80,000 tons per annum starting from the beginning of thirds quarter year 2013. The Company believes that there is no apparent new domestic competitors in the near future, due to economies of scale.


2. Polyester

Polyester Operation

PT Polychem Indonesia Tbk have polyester production facilities that utilizes a Zimmer AG`s technology of Germany  to  produce Polyester Chips, Partially Oriented Yarn (POY), Polyester Staple Fiber (PSF), and a Rieter Scragg`s technology of England to produce Drawn Textured Yarn (DTY).


The total production capacity of the polyester plants is 129,600 tons of Polymer/polymer pellets per year, 43,200 tons of Polyester Yarn per year, 43,200 tons of Polyester Fibers per year and 21,600 tons of Drawn Textured Yarn per year.


Polyester yarn is an intermediate product used for further processing in knitting and weaving industries, PSF is one of the main raw materials used to produce polyester spun yarn, which is widely used to make clothes and household furnishings. PSF is used as the main raw material for carpet, toy, folding mattress, padding, sport shoes and baby diaper product.


In 2017, the polyester division recorded sales of USD 103.3 million, consisting of sales of polyester yarn of USD 38.4 million, polyester fiber of USD 47.6 million and other polyester products of USD 17.3 million. All of the polyester yarn total sales were made to over 20 textile companies in Indonesia. The Company is still one of the largest polyester yarn producers in Indonesia so far. The Company sold 98.4% of its polyester fiber to more than 20 companies in Indonesia and the remaining 1.6% was exported to customers in Asia and Europe.

Polyester Market Overview

Indonesia, is a country having the fourth biggest population in the world, still has a low per capita consumption of polyesters, even less than half of those of other more developed countries. This fact shows that domestic consumption will follow the trend and will keep increasing in the future. As an efficient and competitive polyester producer, the Company is ready to seize the opportunity from this increasing demand and to safeguard its dominant position in Indonesia.


3. Nylon

Polyester Nylon

The Company, through its subsidiary, produces nylon yarn for the production of tire cord, nets, ropes, fabrics, and reinforcing materials in fan belts and hoses. In addition, the subsidiary also produces high quality nylon-6 chips used as the main raw material in yarn, mono filament and various other plastic industries.


The subsidiary`s equipment for the nylon yarn production is from Zimmer AG of Germany with total production capacity of 44,000 tons per year.


In 2017 the subsidiary produced 12,674 tons of nylon yarn in 2017. The total sales of nylon yarn reached USD36.55 million, 100.0% of which was to tire cord plants and the other domestic customer.  

Nylon Market Overview

Nylon tire cord industry is closely related to the development of tire industry. Currently, as the only producer of nylon tire cord for the domestic market, the subsidiary has a huge opportunity to increase its market share in the domestic market and in other countries with continuously growing economy in Asia.