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South Korea's Lotte acquired two Indonesian petchem companiesSouth Korea's Lotte acquired two Indonesian petchem companies |
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South Korean conglomerate - Lotte Group has acquired two petrochemical companies in Indonesia, namely PT. Arbe Styrindo and PT. ABS Industri Indonesia, in an effort to strengthen its presence in the fast growing Southeast Asia nation.
Both PT. Arbe Styrindo and PT. ABS Industri Indonesia with combined acrylonitrile butadiene styrene (ABS) capacity of 40,000 tons/year suspended production in October on financial difficulties. Lotte plans to pour in additional investment to upgrade the plants, lifting annual capacity to 73,000 tons/year by 2019.
Lotte Advanced Materials is the world’s fifth largest ABS producer that has the production facilities with an annual production capacity of 670,000 tons in Yeosu, South Korea. The company plans to jump up to be the world’s fourth largest firm with an annual production capacity of more than 1 million tons through an additional expansion in the future.
The company is planning a greenfield investment to build a 300,000 tons/year ABS plant in Indonesia in 2022, turning the country in to a main global base of Lotte Group’s chemical sector.