BANGKOK (March 6, 2:35 p.m. ET) — Indorama Ventures Public Co. Ltd. has agreed to buy 100 percent of the PET assets of PT Polypet Karyapersada in Indonesia.
The assets, with capacity of 100,800 metric tons of PET per year, are situated adjacent to the purified terephthalic acid assets of PT Indorama Petrochemicals (formerly known as PT Polyprima Karyesreska) at Cilegon, West Java, which Indorama acquired last year.
Approximately half of Polypet's output today is for the Indonesian market, Indorama said in a news release.
Indorama expects to close the deal in the second quarter of this year.
“The synergies created by integrating the two plants will lower costs through shared services and logistic cost saving and will be accretive to the bottom line,” said Indorama CEO Aloke Lohia.
“Indonesia is a fast-growing market for our customers with an attractive potential for future growth. Low energy and other costs make this a very attractive place for long term investment,” he said.