(Yicai Global) June 26 -- Chinese joint venture Tongkun Petrochemical Indonesia has launched a USD8.6 billion petrochemical complex in North Kalimantan, Indonesia, according to an announcement released after the close of trading today.

The project, which is awaiting Chinese government approval, will produce 14.32 million metric tons of petrochemical products a year, including 4.3 million mt of refined oil, 4.85 million mt of paraxylene and 500,000 mt of polyethylene.

The project is expected to generate an average annual operating income of USD10.4 billion and an average after-tax profit of USD1.3 billion.

Tongkun Petrochemical Indonesia is a joint venture 90 percent owned by Hong Kong Huacan International Trading. Shanghai Qinghong Industrial owns the rest.

Huacan International Trading is a JV of Tongkun Group and Xinfengming Group, both private companies based in China’s Zhejiang province. Tongkun is the world’s largest polyester filament yarn maker, and Xinfengming is a large chemical fibers group.

The announcement said that the new petrochemical complex aligns with China’s Belt and Road Initiative, as it will help to build the cross-border industrial, value, and supply chains. 

Editor: Tom Litting