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Pupuk Indonesia takes over Japan's $129m Mitsui fertilizer plant
State-owned fertilizer producer PT Pupuk Indonesia Holding Company has recently acquired Japan's Mitsui &Co Ltd ammonia fertilizer plant in East Kalimantan for Rp 1
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tate-owned fertilizer producerPT Pupuk Indonesia Holding Company has recently acquired Japan's Mitsui &CoLtd ammonia fertilizer plant in East Kalimantan for Rp 1.5 trillion (US$129million).
The acquisition was conducted on April 1.
"Pupuk Indonesia has just bought a big ammonia fertilizer factory from Mitsui in East Kalimantan that has a total annual capacity of 660,000 tons of ammonia. We thought that we could take it over in 2018, but since Pupuk Indonesia had the capacity to carry out the acquisition this year, the Mitsui factory now belongs to us,' State Owned Enterprises Minister Dahlan Iskan said in Jakarta on Thursday as quoted by kompas.com.
Dahlan said that the acquisition process of the fertilizer factory was similar to Inalum.
Mitsui's factory has been operating in the country for 10 years and based on a bilateral agreement the factory should be fully controlled by Indonesia in the near future.
He said that the figure for the acquisition should have reached Rp 4 trillion.
"But, [Pupuk Indonesia] is smart in negotiating the price so got the factory for only Rp 1.5 trillion," he added.
However, he said that 60 percent of the annual ammonia production would be sent to Japan.
"This is a good deal because we have a strong market in Japan and we sell the ammonia at an international standard price," he continued. (nfo)
