PTT Global Chemical Buys PTA/PET Stakes
Thailand’s PTT Global Chemical (PTTGC) agreed on Aug. 8 to acquire stakes of 74% in both PTA producer Siam Mitsui PTA and PET producer Thai PET Resin from SCG Chemicals and Mitsui Chemicals, respectively. PTTGC will pay a total of about $125 million for the holdings.
Under the terms of the agreement, PTTGC and its subsidiary TOC Glycol will acquire shares in Siam Mitsui PTA, and TOC Glycol will buy shares in Thai PET Resin.
SCG Chemicals and Mitsui currently own 50% each in Siam Mitsui PTA. However, once the deal is completed, Siam Mitsui PTA will be owned 49% by PTTGC, 25% by TOC Glycol and 26% by Mitsui Chemicals.
Thai PET Resin is currently owned 20% by SCG Chemicals and 40% each by Siam Mitsui PTA and Mitsui Chemicals. This will change post-acquisition to TOC Glycol holding 44.4%, Siam Mitsui PTA holding 40% and Mitsui Chemicals 15.6%.
The transaction is expected to be completed by the fourth quarter of 2018, subject to all approvals being received.
PTTGC said the investments are part of its strategy to expand downstream and increase its potential and profitability in the polymer market. The company is a major producer of PX, while TOC Glycol is a major producer of MEG, both of which are feedstocks for PTA and PET.
According to RHB Research, Siam Mitsui PTA operates two PTA plants, with a respective capacity of 470,000 t/y and 500,000 t/y. The company has another 470,000 t/y plant which is currently mothballed, but may be restarted.
Thai PET Resin, which buys PTA feedstock from PTTGC, has a PET capacity of 147,000 t/y, which RHB said is running at a utilization rate of 80-90%.
