INDORAMA VENTURES
Acquisition of 50% stake in Indonesian PTA producer / Idled facility scheduled for restart
PET and fibres producer Indorama Ventures (IVL, Bangkok / Thailand; www.indoramaventures.com) is acquiring a 50% stake in Indonesian PTA producer Polyprima Karyareksa.Financial details of the deal were not disclosed.
Polyprima Karyareksa is undergoing a debt restructuring process, and has a 465,000 t/y plant in Cilegon, West Java that is not currently operating. IVL said the plant will be revamped and debottlenecked, raising the capacity to 500,000 t/y, and is scheduled to begin commercial operations in the second quarter of next year. Indonesia is one of Asia’s most promising markets and has a shortage of PTA supply, the company said.
Aloke Lohia, IVL’s founder and CEO, said the acquisition builds on the company’s purchase of SK Chemicals’ (Seoul / South Korea; www.skchemicals.com) Indonesian fibres and PET business earlier this year - see PIEweb of 09.03.2011. “This is a very opportune acquisition for IVL as we will derive cost savings by owning our own PTA feedstock after entering the market in March 2011 with the acquisition of SK Keris, renamed PT Indorama Ventures Indonesia, and its subsidiary SK Fiber, now renamed PT Indorama Polyester Industries Indonesia,” he stated.
PT Indorama Ventures Indonesia has the capacity to produce 160,000 t/y of PET and polyester filament yarns, while PT Indorama Polyester Industries Indonesia has the capacity to produce 36,000 t/y of polyester filament yarns. The plants are located in the Tangerang and Kerawang region, near Cilegon.
Building on the acquisition of these Indonesian operations, IVL announced plans in April to build a 300,000 t/y polyester facility in nearby Purwakarta. The plant is expected to begin operations in the first quarter of 2013. Following debt restructuring with the creditors of the Polyprima Karyareska facility, IVL expects to reduce its shareholding to 41%, with another 41% held by Indonesian PET and fibres producer PT Indorama Synthetics Tbk (http://www.indorama.com/companies/indo_synthetics/profile.htm) and the remaining 18% to be held by other investors.
PT Indorama Synthetics Tbk is led by SP Lohia and Amit Lohia, non-executive directors of IVL. The company has a polymers production capacity of 290,000 t/y. IVL and PT Indorama Synthetics Tbk each intend to acquire an additional 5% stake in Polyprima Karyareksa from the other investors over the next three years.
Polyprima Karyareksa is undergoing a debt restructuring process, and has a 465,000 t/y plant in Cilegon, West Java that is not currently operating. IVL said the plant will be revamped and debottlenecked, raising the capacity to 500,000 t/y, and is scheduled to begin commercial operations in the second quarter of next year. Indonesia is one of Asia’s most promising markets and has a shortage of PTA supply, the company said.
Aloke Lohia, IVL’s founder and CEO, said the acquisition builds on the company’s purchase of SK Chemicals’ (Seoul / South Korea; www.skchemicals.com) Indonesian fibres and PET business earlier this year - see PIEweb of 09.03.2011. “This is a very opportune acquisition for IVL as we will derive cost savings by owning our own PTA feedstock after entering the market in March 2011 with the acquisition of SK Keris, renamed PT Indorama Ventures Indonesia, and its subsidiary SK Fiber, now renamed PT Indorama Polyester Industries Indonesia,” he stated.
PT Indorama Ventures Indonesia has the capacity to produce 160,000 t/y of PET and polyester filament yarns, while PT Indorama Polyester Industries Indonesia has the capacity to produce 36,000 t/y of polyester filament yarns. The plants are located in the Tangerang and Kerawang region, near Cilegon.
Building on the acquisition of these Indonesian operations, IVL announced plans in April to build a 300,000 t/y polyester facility in nearby Purwakarta. The plant is expected to begin operations in the first quarter of 2013. Following debt restructuring with the creditors of the Polyprima Karyareska facility, IVL expects to reduce its shareholding to 41%, with another 41% held by Indonesian PET and fibres producer PT Indorama Synthetics Tbk (http://www.indorama.com/companies/indo_synthetics/profile.htm) and the remaining 18% to be held by other investors.
PT Indorama Synthetics Tbk is led by SP Lohia and Amit Lohia, non-executive directors of IVL. The company has a polymers production capacity of 290,000 t/y. IVL and PT Indorama Synthetics Tbk each intend to acquire an additional 5% stake in Polyprima Karyareksa from the other investors over the next three years.
04.07.2011 Plasteurope.com [219747-0]
Published on 04.07.2011
German version of this article...