Press Release
IVL Pursues Indonesian Plans with new Acquisition Access to PTA provides strategic advantage
Bangkok, Thailand - 4 July 2011 - Indorama Ventures Public Company Limited, the world's leading vertically integrated Polyester Value Chain producer, announced today that it has signed an agreement to purchase shares of Indonesian company PT Polyprima Karyareksa, a manufacturer of PTA (purified terephthalic acid), an essential raw material used in the production of PET and Polyester fibres and yarns. The agreement, which will give IVL 50% of the company, follows closely on recent acquisitions in Indonesia of businesses in the polyester value chain space.
PT Polyprima Karyareksa, located in Cilegon, West Java, has an installed capacity of 465,000 tonnes per annum and will help the company to grow its polyester value chain business in one of the most promising markets in Asia. Following debt restructuring with the creditors of the facility, IVL expects its shareholding to be reduced to 41%, with another 41% held by PT Indo-Rama Synthetics Tbk, Indonesia, a polyester, pet resin & spun yarn producer ("IRS"), and the remaining 18% to be held by other investors (from whom both IVL and IRS would be acquiring 5% each over the next three years).
Mr. Aloke Lohia, Group CEO of Indorama Ventures Pcl said, "This is a very opportune acquisition for IVL as we will derive cost savings by owning our own PTA feedstock after entering the market in March 2011 with the acquisition of SK Keris, renamed PT Indorama Ventures Indonesia (IVI), and its subsidiary SK Fiber, now renamed PT Indorama Polyester Industries Indonesia (IPII).
"After the restructuring has been completed, we intend to debottleneck the plant to increase its capacity to 500,000 tonnes per annum to feed our growth into this exciting market," Lohia said.
IVI is a 160,000 tons per annum PET and Polyester Filament Yarn manufacturing facility and IPII is a Polyester Filament Yarn manufacturing facility with a capacity of 36,000 tons per annum. Following the acquisitions, IVL announced in April that it would add a further 300,000 tonnes per annum facility to make polyester chips.
PT Polyprima Karyareksa, located in Cilegon, West Java, has an installed capacity of 465,000 tonnes per annum and will help the company to grow its polyester value chain business in one of the most promising markets in Asia. Following debt restructuring with the creditors of the facility, IVL expects its shareholding to be reduced to 41%, with another 41% held by PT Indo-Rama Synthetics Tbk, Indonesia, a polyester, pet resin & spun yarn producer ("IRS"), and the remaining 18% to be held by other investors (from whom both IVL and IRS would be acquiring 5% each over the next three years).
Mr. Aloke Lohia, Group CEO of Indorama Ventures Pcl said, "This is a very opportune acquisition for IVL as we will derive cost savings by owning our own PTA feedstock after entering the market in March 2011 with the acquisition of SK Keris, renamed PT Indorama Ventures Indonesia (IVI), and its subsidiary SK Fiber, now renamed PT Indorama Polyester Industries Indonesia (IPII).
"After the restructuring has been completed, we intend to debottleneck the plant to increase its capacity to 500,000 tonnes per annum to feed our growth into this exciting market," Lohia said.
IVI is a 160,000 tons per annum PET and Polyester Filament Yarn manufacturing facility and IPII is a Polyester Filament Yarn manufacturing facility with a capacity of 36,000 tons per annum. Following the acquisitions, IVL announced in April that it would add a further 300,000 tonnes per annum facility to make polyester chips.