Showa Denko and Indonesian mining company, PT Antam announced on Tuesday they agreed to establish a chemical grade alumina plant in West Kalimantan, Indonesia for US$ 450 million. The plant starts the operation with 300,000 tonnes of annual output capacity in January 2013. SDK will use 200,000 tonnes of alumina from the new plant while SDK terminates alumina production at Yokohama plant.Indonesia Chemical Alumina, which Antam controls 80% of with 20% share by SDK, operates the new plant in Indonesia. Antam supplies bauxite to ICA and SDK provides the manufacturing technology. Aluminium hydroxide, intermediate product in alumina production, is used for water purification. SDK and Antam aim to cultivate the market in Indonesia and neighboring countries while SDK provides alumina to existing customers.
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