23 May 2012 10:28 [Source: ICIS news]
TOKYO (ICIS)--Thailand-based Integrated Refinery and Petrochemical Complex (IRPC) said on Wednesday its board has approved a plan to acquire a 25% stake in Ube Chemicals Asia (UCHA), a unit of Japanese chemicals maker Ube Industries, for Thai baht (Bt) 5.3bn ($168m).
Under the deal, IRPC will subscribe to 193.48m new shares issued by Ube Chemicals and also 75m common shares from Ube Industries, IRPC said in a statement.
As a result, IRPC, a subsidiary of PTT, will have a 25% stake in Bangkok-based UCHA, and Ube’s share in UCHA will decrease to 68.99% from 92.67%, the Japanese chemical producer said in a separate statement.
The capital alliance with Ube would enable IRPC to expand its business to the field of value-added goods such as nylon resin, produced by UCHA, Ube added.
UCHA runs a 130,000 tonne/year caprolactam (capro) plant at Rayong and is the sole producer of the material in ?xml:namespace>
UCHA also produces 540,000 tonnes/year of ammonium sulphate and 75,000 tonnes/year of nylon resin, according to Ube.
IRPC also runs a chemical complex in Rayong with a 360,000 tonne/year naphtha cracker, 312,000 tonne/year propylene and 200,000 tonne/year styrene monomer (SM) facilities among other products, Ube said.
Capro is the main feedstock for nylon production.
Additional reporting by Nurluqman Suratman
($1 = Bt31.4)
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