SINGAPORE (ICIS)--Japanese producer AGC, formerly known as Asahi Glass Co, is integrating its chlor-alkali operations in southeast Asia, while strengthening its partnership with Thailand’s PTT Global Chemical (PTTGC).
“The AGC Group aims to expand its chlor-alkali chemicals business in southeast Asia as one of the priority businesses of the AGC plus 2.0 management policy,” the company said in a statement on Friday.
AGC and PTTGC will form a new company by the first half of 2022 “that will promote business development of chlor-alkali products and services in Thailand, Cambodia, Laos, Myanmar and Vietnam (CLMV) markets”.
The proposed joint venture company will be at least 65% owned by AGC and PTTGC’s share will be up to 35%.
As a first step toward integration, PTTGC will launch a tender offer for Thai chlor-alkali producer Vinythai Public, with the aim of eventually delisting Vinythai from the Stock Exchange of Thailand.
AGC is currently the controlling shareholder of Vinythai with a 58.78% stake and PTTGC holding a 24.98% stake.
PTTGC will offer Thai baht (Bt) 39 a piece for 889.2m Vinythai shares it does not own. While the process is underway, AGC’s wholly owned subsidiary in Thailand will take over AGC’s business units in Vietnam.
Vinythai’s share price rose 2.72% to close at Bt37.75 on Friday.
Upon successful delisting of Vinythai, the company will be merged with AGC Chemicals (Thailand) [ACTH], a wholly owned subsidiary of AGC, to form a new company.
“Through this decision, we will further strengthen our chlor-alkali business base in Thailand and CLMV markets and aim for further growth by deepening our partnership with PTTGC,” the Japanese producer said.
Southeast Asia’s caustic soda and polyvinyl chloride resin (PVC) markets are expected to post an annual growth of about 4%, AGC said.
“AGC has expanded its chlor-alkali business in southeast Asia with the aim of steadily capturing growing demand in the region and has consolidated its leading position by enhancing the production capacity of its existing bases in Indonesia and has acquired AGC Chemicals Vietnam and Vinythai,” it said.
AGC's chlor-alkali operations
Focus article by Pearl Bantillo