PTT Chemical keen to acquire stake in Chandra Asri, Indonesia's largest petrochemical firm

31-Aug-11

Thailand’s PTT Chemical is keen to acquire Temasek 23% stake in Chandra Asri, Indonesia's largest petrochemical firm. This acquisition will give PTT more room for growth, as Thailand has limited opportunities in the gas-based petrochemical industry, according to CIMB Securities in the nation. The other petrochem majors eyeing Temasek’s stake are Thailand’s Siam Cement Group and South Korea's Honam Petrochemical. The Indonesian cracker can produce 920,000 tpa of naphtha, 320,000 tpa of polyethylene, 480,000 tpa of polypropylene and 340,000 tpa of styrene monomer. The investment is expected to strengthen PTTCH's portfolio and help it pursue its strategy of expanding in the region. It would boost PTTCH's capacity, as gas supply in Thailand is limited, and it would strengthen PTTCH's footprint in Asean.