Indorama SPL acquires Eleme for US$225 mln

13-Mar-06

After a series of negotiations for almost one year, the SP Lohia-owned, Indonesia-based, Indorama SPL has concluded the acquisition of Nigerian Eleme Petrochemicals for US$225 million. An estimated 40% of the payment has been made and the rest should be completed by June. Indorama signed the share purchase agreement with the Nigerian government to acquire the latter's 75% stake in Eleme Petrochemicals on emerging as the preferred bidder after outracing the consortium of Dangote Chemicals and Transnational Corporation of Nigeria and LG Chemicals. The acquisition of Eleme fits into the company's portfolio as the company with a capacity of about 3,00,000 tpa, produces monoethylene glycol (MEG), propylene and polypropylene. Indorama is a US$600 million company, is the largest polyester producer in Indonesia and uses petrochemicals as raw materials. The acquisition is concurrent with the commissioning of Indorama's PTA plant in Thailand. This plant is to be the world's largest single-train plant with a capacity of about 7,00,000 tpa at an investment outlay of US$360 million.