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AKARTA: Indorama Ventures, the world’s largest polyester value chain company, has agreed to acquire 100 percent of the polyethylene terephthalate (PET) assets of PT Polypet Karyapersada in Indonesia.

The assets, which have a production capacity of over 100,000 tons per annum of PET, are situated adjacent to the polytrimethylene adipate (PTA) assets of PT Indorama Petrochemicals (formerly known as PT Polyprima Karyesreska) at Cilegon, West Java, which Indorama Ventures acquired in a joint venture in 2011.

Approximately, half of Polypet’s current output was for domestic consumption, Indorama Group CEO Aloke Lohia said.

“This acquisition will further assist us to consolidate our position in the Indonesian market, while the co-location with Polyprima fits in with our integration strategy. The synergies created by integrating the two plants will lower costs through shared services and logistics cost-saving and will be accretive to the bottom line.

“Indonesia is a fast-growing market for our customers with an a lot of potential for future growth. Low energy and other costs make this a very attractive place for long-term investment,” said Lohia.