Showa Denko terminates ethyl acetate production in Indonesia

Showa Denko has decided to dissolve its consolidated subsidiary PT Showa Esterindo Indonesia (SEI) and terminate its production of ethyl acetate in Indonesia. The plant, which has a capacity of 50,000 tonnes per annum of ethyl acetate, will be stop production by the end of 2014.
 
Showa Esterindo Indonesia was established in 1997 for the purpose of producing and selling ethyl acetate in the Southeast Asian market, and started to produce ethyl acetate in 1999 as Showa Denko’s first plant to introduce our proprietary technology to synthesise ethyl acetate by adding ethylene directly to acetic acid. Since then, the demand for ethyl acetate in Southeast Asia had been stable for a while.
 
In recent years, however, the business environment for SEI has become harder than before because of rises in material prices and expansion of the capacities of neighbouring countries to supply ethyl acetate. “Under these circumstances, Showa Denko and its partners have concluded, after deliberation, that it is difficult to continue SEI’s operations, and recently decided to dissolve the company,” said Showa Denko in a press release.