Thai companies SCG Chemicals and Polyplex Group have announced new investments in Indonesia.
SCG Chemicals forges Indonesia JV
SCG Performance Chemicals, a wholly-owned subsidiary of SCG Chemicals, has set up a joint venture with Indonesian companies to penetrate the market of high value-added products, according to a company filing to the Stock Exchange of Thailand.
Under the shareholding structure of the new joint venture firm PT Nusantara Polymer Solutions (NPS), SCG Performance holds 50 per cent, PT Buana Primatama Niaga owns 33 per cent and PT Chandra Asri Petrochemical Tbk (CAP) holds the remaining 17 per cent.
Since SCG Chemicals also holds 30 per cent in CAP, Siam Cement Group (SCG), the parent company of SCG Chemicals, holds an indirect stake of 55 per cent in NPS.
“This JV will be a step to pursue strategic growth for HVA products in ASEAN,” Roongrote Rangsiyopash, president and CEO of Siam Cement Group, said in the statement. The operations are expected to commence in the second quarter this year.
CAP is a listed petrochemical producer in Indonesia, while PT Buana Primatama Niaga is a chemical trading firm in Indonesia.
Polyplex invests $95m in Indonesia
Thai listed plastic film producer Polyplex Group has set aside $95 million to establish a new PET production plant in Indonesia.
The plant is expected to start operations in the second half of next year, the company’s managing director Amit Prakash told local media.
The plant will serve demand in the Indonesian market with an annual production output of 44 kilometric tonnes of film, 87 kilometric tonnes of chip, and 6 kilometric tonnes of metalliser and PET film.
He said the company also plans to invest $7.6 million in new production lines in Thailand and another $3.4 million in replacement metallized film production plant in the United States by June this year.