PTT Global’s latest buy and Siam Cement’s Indonesia plan

Business, Company Strategy, Europe, Indonesia, M&A, Olefins, Projects, Thailand, US

By Malini Hariharan

There have been no headline-grabbing deals but bit by bit PTT Global Chemical is extending its business beyond Asia and entering new product areas.

Yesterday, PTT Global announced plans for a joint venture with Perstorp Holding France in toluene diisocyanate (TDI), aliphatic isocynates such as hexamethylene diisocyanate (HDI) and derivatives.

PTT Global will have a 51% share in the joint venture, which includes Perstorp’s coating additives group with manufacturing sites at Pont-de-Claix in France and Freeport in the US

The transaction, subject to approval, will also give PTT Global access to technology and is part of a strategic move into the ‘high volume specialty downstream business’.

The joint venture is likely to invest in new plants as well boost R&D spend to improve operations efficiency to strengthen the competitive position.

It has been a busy year for PTT Global, formed after the merger of PTT Chem and PTT Aromatics.

PTT Global successfully bought a 50% stake in US-based polylactic acid maker NatureWorks from Cargill for $150m. It also invested $60m US-based Myriant Corp which makes bio-based chemicals.

But it lost out to Siam Cement for a stake in Chandra Asri, Indonesia’s sole cracker operator.

Meanwhile, Siam Cement and Barito Pacific, the joint owners of Chandra Asri, are planning a public offering on the Indonesian stock market to raise funds for a cracker expansion. A borrowing from the banks is also being considered for the project which will raise ethylene capacity to 800,000-1m tonnes/year from the current 550,000 tonnes/year.

A final decision on the project is due next year.

“Only 5% of CAP’s shares have been floated in the Indonesia stock market. We’re thinking of increasing that to 20%,” said Cholanat Yanaranop, president of SCG Chemicals to a Thai newspaper.

And SCG is still waiting for a decision on its bid to acquire Indonesian vinyls producer Sulfindo Adiusaha.

Its cracker project in Vietnam is still alive with the government offering fresh incentives. The $4.2-billion project has been given a 30-year tax exemption on propane, butane, naphtha, industrial salt and coal, as well as a 3% tax rate products such as polypropylene (PP) and polyethylene (PE) for 10 years.


Fresh US sanctions to target Iran petchems


By Malini Hariharan The US is looking to introduce fresh measures targeted at th...

Learn more

Babyboomers Change The Markets


Consumption dominates chemical demand. Chapter 7 of our new ‘Boom, Gloom a...

Learn more
More posts
Rate of recovery hugely reliant on effectiveness of government policies

By John Richardson UNLESS MORE action is taken by developed countries to help counter the impact of ...

China bans on single-use plastics move forward with major recycling investments likely

By John Richardson THIS EVENT slipped under most people’s radar in the midst of the pandemic crisi...

Developing world polymers demand unlikely to see quick rebound

By John Richardson THIS IS a tragedy in the genuine sense of the word, not just in the so-often misu...

China’s policy dilemma: raising local demand while protecting exports

  By John Richardson IN THIS Western-centric world, a huge amount of ink is split over the cons...

China’s polyethylene demand good so far in 2020 but beware of risks ahead

Note that all the comparisons in this post are on a year-on-year basis unless otherwise stated By Jo...

Ah, I see: China’s booming demand mystery a little closer to being solved

  Note that all the data comparisons below are on a year-on-year basis By John Richardson THE P...

The China polyester mystery continues in a world turned upside down

By John Richardson SOMETHING very strange is happening in China’s polyester industry which has eno...

China will struggle to boost local retail sales during rest of 2020 with export outlook uncertain

By John Richardson IF IT were easy, then there would be an oversupply of owners of large yachts in M...


Market Intelligence

ICIS provides market intelligence that help businesses in the energy, petrochemical and fertilizer industries.

Learn more


Across the globe, ICIS consultants provide detailed analysis and forecasting for the petrochemical, energy and fertilizer markets.

Learn more

Specialist Services

Find out more about how our specialist consulting services, events, conferences and training courses can help your teams.

Learn more

ICIS Insight

From our news service to our thought-leadership content, ICIS experts bring you the latest news and insight, when you need it.

Learn more