Malaysia's Petronas is considering sale of two of its petrochemical plants to Vinythai PCL in return for a stake- subject to results of a valuation report on the equity portion of the two petrochemical plants -- Vinyl Chloride (M) Sdn Bhd in northeast Malaysia and Phu My Plastics & Chemical Company Ltd. in Vietnam.
Under the plan, Vinythai, Thailand's second-largest PVC maker would issue shares to the Malaysia state oil giant for the plants at an estimated enterprise value of more than $1 billion, to create economies of scale. The economies of scale will help to protect petrochemical margins affected by rising feedstock cost due to sharply higher oil prices.
The Malaysian plant, with an annual capacity of 400,000 tons of vinyl chloride monomer (VCM), is 100% owned by Petronas following stake sales by partners including Japanese trading house Mitsui several years ago. Petronas increased its stake to 50% in 2000 in Phu My Plastics- with an annual PVC production capacity of 100,000 tons, following the withdrawal of Japanese trading house.
06-Apr-06 
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