30 June 2011 09:40 [Source: ICIS news]
SINGAPORE (ICIS)--Thailand’s Indorama Ventures said on Thursday it will acquire 50% of debt-ridden Indonesian purified terephthalic acid (PTA) producer, Polyprima Karyesreska (Polyprima), for an undisclosed amount.
The acquisition will be made through its subsidiary, Indorama Netherlands, with the definitive share purchase agreement expected to be signed on Thursday, the company said.
It said that the value of the transaction “is less than 5%” of Indorama Ventures’ total assets.
Polyprima, which has operations in Cilegon, West Java, Indonesia, is under debt restructuring, Indorama Ventures said. The Indonesian firm has a 465,000 tonne/year PTA plant that is not operating.
The plant is expected to start commercial production in the second quarter of 2012 on completion of required maintenance, revamping and debottlenecking, Indorama Ventures said. Once the processes are completed, the plant’s capacity will increase to 500,000 tonnes/year, it added.
Polyprima's debt restructuring with its creditors is expected to be completed by the fourth quarter of 2011. After the debt restructuring with creditors and issuing of new capital, Polyprima will be 41%-owned by Indorama Ventures. Indorama Synthetics Tbk (PTIRS) will hold a similar stake, while the balance of 18% will be held by other shareholders.
Indorama Ventures said Polyprima’s PTA plant will help provide feedstock for its polyester plants.
Early this month, Indorama Ventures started building a 300,000 tonne/year polyester plant in Purwakarta that should boost its polymer capacity in Indonesia to about 460,000 tonnes/year in the first quarter of 2013.
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