Kobe Steel consortium completes Indonesian caustic soda plant:
Commercial production begins


TOKYO (June 25, 1998) -- A Kobe Steel-led consortium has completed expansion of a chlor-alkali plant in Indonesia and the facility has begun commercial production, announced Kobe Steel, Ltd.

In April 1996, a consortium consisting of Kobe Steel, Ltd., Asahi Chemical Industry Co., Ltd. and its subsidiary Asahi Engineering Co., Ltd., and Sumitomo Corporation was awarded a US$57 million contract to expand production of the chlor-alkali plant owned by P.T. Sulfindo Adiusaha.

Located in Merak, West Java, the plant produces caustic soda. The project called for increasing production capacity from 100,000 metric tons per year to 210,000 metric tons. Process technology was also upgraded from using mercury to Asahi Chemical's ion-exchange membrane process. The plant, completed on schedule in two years, was inaugurated in April 1998 and is currently in full production.

Sulfindo Adiusaha supplies the caustic soda to fiber and pulp firms in Indonesia. While demand has decreased due to the domestic situation, exports to Malaysia and Australia have risen. The caustic soda shipped is used to bleach paper and as a disinfectant.

About 49 million metric tons of caustic soda are produced worldwide yearly. Membrane processes have been increasing adopted due to growing environmental awareness. In 1997, 18 million tons, or 37%, was made using membrane processes, and the Stanford Research Institute estimates a 1.6% yearly rise in membrane technology to 2000. Asahi Chemical's ion-exchange membrane process is the most widely used membrane process with a 30% share, representing production of 5.4 million metric tons per year.

Kobe Steel has a long history in the chemical plant business. In 1958, it supplied a fertilizer plant to Bangladesh, marking Japan's first full turnkey plant export. Since then, Kobe Steel has supplied numerous plants to Southeast Asia and the Middle East.

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Media contact:
Gary I. Tsuchida
Kobe Steel, Ltd.
Tokyo, Japan
tel (03) 3218 6055
fax (03) 5252 7961
e-mail www-admin@kobelco.co.jp



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