Thailand-based polyester producer Indorama Ventures Plc (IVL) has signed an agreement to acquire a
50-percent stake in PT Polyprima Karyareksa, an Indonesia-based producer of purified terephthalic
acid (PTA) with an installed capacity of 465,000 metric tons per year. PTA is a raw material used
to produce polyester fibers and yarns.
After debt restructuring with creditors, IVL will likely hold a 41-percent share in the
company. Indonesia-based polyester, PET resin and spun yarn producer PT Indorama Synthetics Tbk
also will hold 41 percent, with the remaining 18-percent of shares held by other investors.
“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),” said Aloke Lohia, CEO, IVL. “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.”