Ecogreen

completed

PT Ecogreen Oleochemicals (Ecogreen, the company), an Indonesia based company, is implementing a $84 million project involving establishing a new 60,000 tonnes per annum (tpa) capacity fatty acid production plant, incremental working capital and debt refinancing. The company is one of the leading global producers of natural fatty alcohols, its core product group, as well as co-products and intermediates such as fatty acids, methyl esters and glycerin. The company produces natural or vegetable oil based fatty alcohol, largely used for the production of detergents, shampoos, conditioners, skin applications and similar consumer products. They are also used as stabilizers in the production of plastics and lubricants. The company has 110,000 tpa natural fatty alcohol production capacity at two production plants located in Belawan, Medan (30,000 tpa) and Batam (80,000 tpa) in Indonesia. Ecogreen’s FY02 turnover was $86 million, of which about 95% was from exports to Asia-Pacific, North and South America and Europe. In addition to its production plants, the company has affiliated marketing and distribution companies which have long term lease finished goods storage facilities in Rotterdam, Germany; Houston,Texas; and Newark, New Jersey.The project is part of the company’s long-term strategy to improve its international competitiveness through better utilization of assets and strategic management of raw material inventory. About half of the new fatty acid capacity will be used to support an 8,000 tpa fatty alcohol capacity increase at Belawan, Medan plant through debottlenecking and to supply to an affiliate soap noodle production company. The surplus will be sold in the merchant market. The working capital and the debt refinancing are aimed at helping the company structure a flexible working capital facility with a core component to fund the permanent working capital and a stand-by facility to finance raw material purchases at low price points.