Indorama Ventures to buy PTA producer PT Polyprima

30 Jun '11

2 min read

The Board of Directors of IVL at their meeting No. 5/ 2011 dated 29 June 2011 approved the acquisition of a 50% stake by IVL through its subsidiary Indorama Netherlands B.V. in PT Polyprima Karyesreska (“PT Polyprima”), a PTA producer. In this regard a definitive Share Purchase agreement will be signed on 30 June 2011 with selling of PT Polyprima.

PT Polyprima is located in Cilegon, West Java, Indonesia and has an installed capacity of
465,000 Mts. per annum. The technology used is that of Invista. PT Polyprima is currently under a debt restructuring process.

After the debt restructuring with creditors and issue of new capital by PT Polyprima, IVL
shareholding will be reduced to 41% in PT Polyprima. PT Indorama Synthetics Tbk, (PTIRS) will hold another 41% and the balance 18% by others. The restructuring and approval process is expected to be completed by Q4, 2011.

PTIRS is a Group Company of Mr. SP Lohia and Mr. Amit Lohia, Non-Executive directors of IVL having an annual polymer capacity of 290,000 Mts.

Currently, the plant is not operating and is expected to start commercial production in Q2, 2012 on completion of required maintenance, revamping and capacity de-bottlenecking. On de-bottlenecking the capacity will increase to 500,000 Mts per annum. We will update you on the start-up of plant.

Indonesia is growing to become one of the large polyester markets and has a shortage of PTA supply. IVL through its equity stake in PT Polyprima will secure the PTA supplies for its Polyester plants in Indonesia. The polymer capacity of IVL in Indonesia after the Greenfield project in Q1 2013 will be approx 460,000 Mts. per annum.

The consideration value is less than 5% of the total assets of the Company.

Indorama Ventures Public Company Limited

More Indorama Polymers Public Company Limited News... More Textiles News - Indonesia...