JAKARTA (TheInsiderStories) – The petrochemical producer, PT Chandra Asri Petrochemical Tbk (IDX: TPIA), targeting to merge with its subsidiary, PT Styrindo Mono Indonesia in Jan. 1, 2021, after get approval from the shareholders on Monday (07/12). The combined assets of the merge-company to reached US$3.62 billion.
Styrindo was founded in 1991 and focuses on the manufacturing and wholesale trading industries. The unit is the only styrene monomer manufacturer in Indonesia with a production capacity of 340 KTA. The plant located in Serang, Banten.
Chandra Asri will become the survivor entity firm and remain as a public company and have total assets $3.29 billion. While, the subsidiary have a total assets worth of $327.79 million. Recently, Thai’ Kasikonrnbank (Kbank), extend and expand a THB1.6 Billion ($53.31 million) trade finance and committed unsecured revolving credit facility.
In terms of performance, the company owned by tycoon, Prajogo Pangestu, posted a net loss of $19.73 million in the third quarter of 2020 from a year ago booked a net profit of $31.45 million. The net income also decreased by 8.6 percent to $1.26 billion from $1.38 billion in the third quarter of 2019, due to lowered average sales prices, especially for olefin and poly-olefin.
Currently, the largest shareholder of the issuer held by PT Barito Pacific Tbk (IDX: BRPT) at 41.88 percent, SCG Chemicals Co. Ltd., of 30.57 percent, Pangestu 15.07 percent, Marigold Resources Pte. Ltd., amounted to 4.75 percent, and public 7.73 percent.
Chandra Asri is the largest integrated petrochemical producer in Indonesia and produce naphtha cracker into olefin (ethylene, propylene), pygas, mixed C4, styrene monomer, butadien, MTBE/Butene-1, and polyolefin (polyethylene and polypropylene), which are key raw materials used to produce high value-added durable products used daily.
The product applications include masks, personal protective equipment and hygienic packaging for the domestic industry. The company also has started the operating of the Methyl Tert-butyl Ether and B1 plants. President Director of Chandra Asri, Erwin Ciputra, stated, with the operation of this new factory, he hope that the government’ goal to reduces import by 35 percent in 2022 can be achieved.
The new factories were built with investment costs of $130.5 million and have a capacity of 127,000 tons per year. While the Butene-1 plant will have a capacity of 43,000 tons per year. These new factories will absorb Raffinate-1 to be used as raw material. In October of 2019, the manufacturer will also complete the construction of a polyethylene and polypropylene factory.
With the operation of these two new factories, Chandra Asri’ production capacity could increase to 4.2 million tons from the current 3.9 million tons. After operate four new factories in this year, the producer will also complete the construction of the CAP 2 factory in June 2024.
The producer will allocate around $5 billion to build the factory and looking strategic investors to build the plants. After the second plant is operates, the company production capacity can increase to 8 million tons.
The subsidiary of Barito as the majority shareholders, is the largest integrated petrochemical company producing olefins and polyolefins. The company factories located in Cilegon and Serang, Banten Province. The company is the only producer who operates a naphtha cracker and is the sole domestic producer of ethylene, styrene monomer and butadiene.
In addition, the unit is also the largest polypropylene producer in Indonesia, including produces plastic raw materials and chemicals used for packaging products, pipes, automotive, electronics, others.
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