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Gajah Tunggal plans to increase the production capacity of its styrene butadiene rubber (SBR) plant by 20% to meet rising demand in Indonesia. The company, Indonesia's sole SBR producer, is one of the largest tyre manufacturers in Southeast Asia. Gajah Tunggal could add 12 000 tonne/year of capacity to its 60 000 tonne/year SBR plant in Merak, west Java, although a final decision on the expansion has not been made yet. Demand for SBR is growing by 10% annually: Gajah Tunggal estimates that demand in 2004 was about 50 000 tonne, and that the high prices of SBR this year has not affected Indonesian demand.