04 July 2011 07:21 [Source: ICIS news]
SINGAPORE (ICIS)--Thai producer Indorama Ventures said on Monday that it has signed a purchase agreement for a 50% stake in Indonesian purified terephthalic acid (PTA) maker PT Polyprima, which is currently under debt restructuring.
Financial details of the acquisition were not disclosed.
Polyprima has a PTA plant at Cilegon, West Java, with a 465,000 tonne/year capacity.
"This is a very opportune acquisition for Indorama Ventures as we will derive cost savings by owning our own PTA feedstock after entering the [polyester] market in March 2011,” Aloke Lohia, group CEO of Indorama Ventures, said in a statement.
Indorama Ventures had acquired SK Keris and its subsidiary SK Fiber in March, which were renamed Indorama Ventures Indonesia (IVI) and Indorama Polyester Industries Indonesia (IPII), respectively, the company said.
IVI has a 160,000 tonne/year polyethylene terephthalate (PET) and polyester filament yarn manufacturing facility, while IPII has a 36,000 tonne/year polyester filament plant. Indorama Ventures has further plans to add a 300,000 tonne/year polyester facility, as announced in April.
"After the restructuring [of Polyprima] has been completed, we intend to debottleneck the plant to increase its capacity to 500,000 tonnes per annum to feed our growth into this exciting market," Lohia said.
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