Tri Polyta to acquire the domestic petrochemical major

(plastemart) -- Indonesia's largest PP maker- PT Tri Polyta Indonesia will acquire petrochemical firm PT Chandra Asri in a share-swap deal worth about US$1.2 bln. Tri Polyta will issue 2.93 bln new shares to Chandra Asri's shareholders in exchange of it's US$1.2 bln assets. Deutsche Bank and Singapore's DBS Group are advisors for the deal.

Both the companies are controlled by Indonesian tycoon Prajogo Pangestu through holding company PT Barito Pacific. Barito Pacific owns 77.9 of Tri Polyta and 70% of Chandra Asri. The new combined entity will be Indonesia's biggest listed petrochemical firm, when the deal is completed by January 1 2011. Barito will own 71.6% stake in the new entity.


Hungarian injection moulder enters alternative energy business

(prw) -- Electronics component moulder Videoton Holding has diversified its portfolio by entering the alternative energy business.

The group, a major injection moulder of automotive parts based in Szekesfehervar, Hungary, has purchased a 51% majority stake in the Hungarian energy firm STS Group. It is involved in areas including wind farms, miniature hydro-electric plants, biomass-fuelled power plants and energy production using gases from waste landfill sites and sewage treatment facilities.

The deal represents an investment of around ┬5.34m by Videoton, which has accumulated a large amount of free capital some of which it aims to invest in fresh opportunities outside its traditional markets. Alternative energy has become part of its long term strategy.


Reliance to expand the biggest refining complex in India

(plastemart) -- Reliance Industries plans to invest Rs 40,000 crores in petrochemicals by 2014 to expand the world's biggest refining complex at Jamnagar, Gujarat. Rs. 16,000 crore has been earmarked to set up a cracker unit as part of a proposed petrochemicals project in Jamnagar. The cracker will produce ethylene, propylene, low-density polyethylene and monoethylene glycol. Rs. 15,000 crore will be invested in a coke gasification plant that will fuel power plants in the complex. It plans to spend Rs. 6,850 crore on a plant to produce paraxylene, used in the production of fibre and film, and a unit to manufacture butyl rubber that has applications in industries, including adhesives, agricultural chemicals and personal care products.Various supporting and ancillary projects would cost Rs. 4,000 crore. They include a fifth crude distillation unit (CDU) that would utilize crude from Cairn India Ltd's Mangala oil field in Rajasthan. A CDU is a front-end process in the refinery to separate crude oil into products such as naphtha, kerosene and light gas oil, among others. Thid is the first time that RIL executives have specified the investment on the petrochemical projects in Jamnagar as part of an expansion drive called J3, which denotes the third phase of expansion of the complex.


Trans Polymers to launch polyethylene plant in Pakistan

(plastemart) -- Trans Polymers Ltd. - a British and Pakistani joint venture is in the process of finalizing plans to build a 350,000 tpa polyethylene (PE) plant near Port Qasim in Karachi, Pakistan, at cost of US$701 mln. The project promoters are Trans Polymers (UK) Limited, a private UK investment company comprising British, Pakistani, GCC, EU and Malaysian investors, and its Pakistani subsidiary, Trans Polymers (Pakistan) Ltd.

The promoters also have an offtake agreement in place with Ravago of Belgium to import a portion of the production. Currently, Pakistan imports all its PE and PP requirements. The proposed project has received approval from the government of Pakistan, which has granted various foreign investment incentives as well as favorable tariff concessions. Construction, commissioning and warranty testing of the plant is estimated to take 34 months and commercial production is expected by the fourth quarter of 2013.


KPC intends to buy a stake in Indian Oil

(plastemart) -- Kuwait Petroleum Corporation is keen to pick up strategic stake in Indian Oil Corporation, which is preparing for a follow-on public offer later this fiscal year. The government, however, is planning to sell 10% of its stake in the company to the public through a follow-on offer and not a strategic sale.

Kuwait is also keen to strike long-term crude supply agreements with India and participate in IOC's upcoming Rs 29,777 crore refinery and petrochemical complex at Paradip in Orissa. Kuwait is the third largest supplier of crude oil to India, selling over 11 mln tpa.