SINGAPORE (ICIS)--PETRONAS Chemicals Group (PCG) has completed the sale of its 93.11% interest in Phu My Plastics and Chemicals Co (PMPC) to Japan’s Asahi Glass Co and Mitsubishi Corp for an undisclosed fee, the company said late on Friday.
The parties involved in the deal signed a share purchase agreement on 6 November last year.
Vietnam-based PMPC can produce 100,000 tonnes/year of polyvinyl chloride (PVC) at its plant in the Cai Mep industrial zone in Vung Tau province.
“The performance of PCG’s vinyl business had not been satisfactory compared to the group’s other businesses, as it was not as closely integrated within the group’s product value chain,” said PCG president and CEO Sazali Hamzah in an e-mailed statement.
PCG announced its exit from the vinyl business in October 2012 as part of its portfolio optimisation strategy.
“The discontinuation of the vinyl business provides the group with the opportunity and flexibility to focus on the production of higher margin products,” Hamzah added.
The company ceased operations and decommissioned its vinyl chloride monomer (VCM) and PVC plants in Malaysia in 2013.