On April 9, it was announced that the first phase of a $600 million integrated industrial chain project, with an annual capacity of 120,000 tons of melamine, has officially commenced construction. The project, led by Sichuan Jinxiang Chemical Industry Group Co., Ltd. (Sichuan Jinxiang) through its controlling stake in Jiabu United Technology Co., Ltd., broke ground on April 8 in the Gresik Special Economic Zone, East Java, Indonesia. This marks the first melamine factory in Indonesia and is a benchmark green chemical project under the high-quality Belt and Road cooperation between China and Indonesia, representing a critical step in the overseas expansion of this leading Sichuan-based chemical enterprise.
The project is designed to establish a complete industrial chain from natural gas to ammonia, urea, and finally melamine, and will be constructed in two phases. The first phase is expected to be completed and begin trial operations in the second quarter of 2027. Once fully operational, it will have an annual production capacity of 300,000 tons of synthetic ammonia, 600,000 tons of urea, and 120,000 tons of melamine.
Tang Yin, President of Sichuan Jinxiang, stated that this project will precisely fill the gap in Indonesia's melamine industry. It aims to meet local market demand while also serving Southeast Asian and global markets, establishing itself as a regional hub for the supply of green chemical materials. Having grown from its roots in Meishan city, Sichuan Jinxiang is a veteran in the manufacturing sector with 56 years of experience in the chemical industry. The company has accumulated nearly a thousand scientific achievements and patents and is the world's largest melamine producer, as well as China's largest producer of new green nitro compound fertilizers and crop nutrients.
Melamine is an important organic chemical intermediate widely used in wood processing, coatings, molding compounds, and textiles. The project utilizes the industry-leading "6.0" melamine technology developed by Sichuan Jinxiang to create a full "fertilizer-chemical-material" industrial chain. The new facility boasts internationally leading energy efficiency indicators. Its comprehensive product energy consumption is 26.8% lower than the global industry's advanced benchmark, with carbon emissions reduced by 34.5%. This translates to an annual reduction of 224,000 tons of carbon dioxide equivalent, an environmental benefit comparable to planting 12.3 million trees. Beyond creating over a thousand local jobs, the project is expected to drive synergistic upgrades in upstream and downstream industries in Indonesia, such as agriculture and logistics.
Why was Indonesia chosen? President Tang Yin explained that the decision was based on a strong alignment of factors including raw materials, market access, strategic positioning, and technology. Regarding raw materials, Indonesia's abundant natural gas resources perfectly meet the substantial feedstock requirements of the full industrial chain. From a market perspective, as a tropical archipelago nation with high average temperatures allowing for three to four crop cycles per year, Indonesia has strong demand for fertilizers like urea. Concurrently, its rich forestry resources create a significant need for melamine as a key raw material for adhesives used in wood processing.
Tang Yin noted that for Indonesia, the local market is heavily reliant on imports for high-value-added melamine products, resulting in a high degree of external dependence. The establishment of the Sichuan Jinxiang project will not only enable localized supply of high-quality fertilizers and chemical materials but will also precisely address this gap in Indonesia's industrial landscape.
Indonesian Coordinating Minister for Economic Affairs, Airlangga Hartarto, commented on April 8 that the investment by the Chinese company in Indonesia's first melamine project is a significant milestone for the country's industrial downstream development. The project processes Indonesian-produced natural gas into liquid ammonia and further extends into downstream industries. This will strongly support agriculture, chemicals, and other strategic manufacturing sectors, while also creating export opportunities and enhancing Indonesia's competitiveness in the global market.
Preparations for this venture began as early as 2024, with Sichuan Jinxiang collaborating with Meishan Vocational & Technical College to establish a "Jinxiang Sirui" Indonesia-specific training program. This initiative facilitates Indonesian students coming to China for advanced studies and internships, fostering deep technology transfer and cultural exchange to cultivate high-quality industrial talent for Indonesia. Throughout the construction and operational phases, the project will adhere to principles of local employment and technology transfer.
Lei Lin, Chairman of Sichuan Jinxiang, emphasized that the company will strictly comply with Indonesian laws and regulations. By adopting a win-win model of "Chinese technology, Indonesian resources, and global markets," the project aims to inject green momentum into the prosperous development of the "Land of a Thousand Islands" and to strengthen the friendship between China and Indonesia.
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