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Chandra Asri inks $1.7 billion deal over new petrochemical plant
The country’s largest integrated petrochemical manufacturer, PT Chandra Asri Petrochemical (TPIA), has sealed a deal worth US$1.3 billion with Thailand’s largest refinery Thai Oil Public Co Ltd (Thaioil) for the development of a petrochemical complex.
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Chimneys stand tall at the newly constructed gas processing plants operated by Chandra Asri in the industrial city of Cilegon in Banten, West Java. (Courtesy of Chandra Asri)
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ublicly listed PT Chandra Asri Petrochemical, the country’s largest integrated petrochemical manufacturer, has reached a US$1.7 billion deal to develop a new petrochemical complex in Indonesia.
Under the deal, Thai Oil Public Co Ltd (Thaioil), which operates the largest refinery in Thailand, is looking to buy a 15 percent stake in Chandra Asri through a rights issue.
Meanwhile, SCG Chemicals, one of Chandra Asri’s major shareholders, plans to retain its stake of approximately 30.57 percent following the rights issue. The total estimated investment from both companies is up to $1.3 billion.
Thaioil and SCG Chemicals plan to invest another $400 million in Chandra Asri subject to a final investment decision (FID) slated for 2022 and to approval from regulatory authorities.
“Indonesia’s dependency on imports of petrochemical products and growing domestic demand puts [the company] in a strategic position,” said TPIA corporate secretary Suryandi at a virtual press conference on Monday.
Read also: Chandra Asri prepares new US$5 billion factory
The new complex, valued at $5 billion in total, will double the company’s production capacity from the current 4.2 million tons a year to more than 8 million tons a year. Chandra Asri subsidiary PT Chandra Asri Perkasa (CAP 2) will develop the new complex.
