Nippon Shokubai wins tax waiver in Indonesia for boosting acrylic acid output
JAKARTA, NNA - The Indonesian subsidiary of Japanese chemical manufacturer Nippon Shokubai Co. has been granted an incentive tax break by the Indonesian Ministry of Finance for an investment in expanding the acrylic acid production capacity of its plant.
The tax holiday, aimed at promoting investments in industrial clusters, will provide the subsidiary, Pt. Nippon Shokubai Indonesia (NSI), with a corporate income tax exemption for seven years after the start of commercial operation at the upgraded plant, as well as a 50-percent tax reduction for the following two years, Nippon Shokubai said in a statement last week.
NSI, established in 1996, is due to raise the annual acrylic acid output to 240,000 tons from the current 140,000 tons at the plant located in Cilegon, Banten Province on Java Island, with an investment of about $200 million, the statement said. A groundbreaking ceremony was held in July to start the expansion project, which is scheduled to be completed in late March 2021 for the start of commercial operation in November the same year.
Acrylic acid is one of Nippon Shokubai’s core business items and is steadily growing in demand as a key material for superabsorbent polymers, acrylates and other chemicals, the statement said.