Indorama Ventures buy stake in PTA producer in Indonesia

Indorama Ventures to buy stake in PTA producer in Indonesia

4:26 PM, 7th July 2011
Indorama Ventures to buy stake in PTA producer in Indonesia

 

BANGKOK, THAILAND: Indorama Ventures Public Company Ltd (IVL) will acquire 50 per cent stake through its subsidiary Indorama Netherlands B V in PT Polyprima Karyesreska, a PTA (purified terephthalic acid) producer. In this regard a definitive share purchase agreement was signed on 30 June, 2011 with selling of PT Polyprima.

PT Polyprima is located in Cilegon, West Java, Indonesia and has an installed capacity of 465,000 Mts per annum, using Invista technology. PT Polyprima is currently under a debt restructuring process.

After the debt restructuring with creditors and issue of new capital by PT Polyprima, IVL shareholding will be reduced to 41 per cent in PT Polyprima. PT Indorama Synthetics Tbk, (PTIRS) will hold another 41 per cent and the balance 18 per cent by others. The restructuring and approval process is expected to be completed by Q4, 2011.

Currently, the plant is not operating and is expected to start commercial production in Q2, 2012. On de-bottlenecking the capacity will increase to 500,000 Mts per annum.

Indonesia is growing to become one of the large polyester markets and has a shortage of PTA supply. IVL through its equity stake in PT Polyprima will secure the PTA supplies for its polyester plants in Indonesia. The polymer capacity of IVL in Indonesia after the Greenfield project in Q1 2013 will be approx 460,000 Mts per annum.

© WOC News

 

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