Lotte Chemical Titan Tbk (FPNI) expanded its business into real estate by leasing industrial land in Cilegon, Banten. The new business will increase the company’s revenue in the next few years.
Johanes Bambang Budihardja, Independent Director of FPNI, said that its subsidiary, Lotte Chemical Titan Nusantara (LCTN) has about 40 ha land in Cilegon, Banten and will be leased to Lotte Chemical Indonesia (LCI), an affiliated company with FPNI.
“We will built naphtha cracker plant,” said Johanes. The location of LCTN is adjacent to the land purchased by LCI from Krakatau Steel Tbk (KRAS).
LCI will invest USD 3 billion to USD 4 billion to build naphtha cracker plant with a production capacity of two million tons per year. The project will be built within the next four to five years.
In addition to leasing the land to LCI, the company will also offer the land to other manufacturing companies. This business development plan has been approved by shareholders at the Extraordinary General Meeting of Shareholders (EGMS) on August 25, 2017.
The company booked USD 227.37 million until the first half of 2017, up 1.86 percent over the same period last year. The net profit reached USD 1.95 million, surging 133.25 percent over the same period last year due to lower income tax expense and other benefits.
In the first trading session on Friday (25/8), FPNI rose 2.68 percent to IDR 306. (*)