Project Name: Industry Fatty Amine Bontang,
Project location:Bontang, East Kalimantan, Indonesia.
Project investment value: $ 125,000,000
Project investment scheme:
Description
Fatty Amine is a high-value product with a profit margin between COGS and market price reaching 22-35%, while the domestic market is 100% filled with imported products. The Global Fatty Amine Market in 2021 has reached 1.7 million tons/year with a CAGR of 6.6%. The potential offtaker of the Fatty Amine products produced is the Consumer goods industry.
The Fatty Amine Industry with a capacity of 20 KTA requires around 24.5 KTA of crude palm oil (CPO) or crude palm kernel oil (CPKO). CPO and CPKO raw materials can be supplied from palm oil mills (PKS) around Bontang City, especially from East Kutai Regency as the largest palm oil producing district in East Kalimantan Province. In addition, the location of the Fatty Amine Industry is supported by a strategic location close to the Ammonia Factory in KIE Bontang. The management of KIE Bontang has allocated 73.56 Ha of land in Development Block 3. Currently, development block 3 is in the process of land preparation. The needs of the Fatty Amine industry are 30 Ha. The KIE area has been well facilitated for electricity, water, WWTP, nitrogen gas, steam, natural gas, docks and others. The supporting infrastructure that has been provided includes road infrastructure, airports, and ports.
The Fatty Amine industry produces 3 main products, namely primary amine, secondary amine, and tertiary amine with a by-product in the form of glycerol. The Fatty Amine production process is made in 2 stages, namely hydrolysis of CPO / CPKO into fatty acids / Fatty Acids then amination and hydrogenation of fatty acids into Fatty Amine. This Fatty Amine industry project is considered economically feasible.
Source: Ministry of Investment and BKPM of the Republic of Indonesia.
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