Jan 2, 2011

Chandra Asri officially operated

PT Chandra Asri Petrochemical Tbk (CAP), a merger company between PT Tri Polyta Indonesia Tbk and PT Chandra Asri, has been effectively operated on January 1 2010 after obtaining approval from Badan Pengawas Pasar Modal & Lembaga Keuangan (Bapepam-LK) and Indonesia Investment Coordinating Board.
CAP sealed a business license approval from investment board on December 21 2010 and obtained an effective from Bapepam-LK on November 22 2010.  
Following the approvals, CAP stocks will be effectively listed at Indonesia Stock Exchange on January 3 2010. 
"By sealing an approval on marger, it enables us to commence strategic paths to improve efficiency and jack up capacity," said CAP President Director Erwin Ciptra in a press statement obtained by Insider Stories today. 
CAP is a merger company between two affiliated petrochemical companies, Tri Polyta and Chandra Asri, owned by PT Barito Pacific Tbk (BRPT), a holding company controlled by Indonesian tycoon Prajogo Pangestu. The merger sealed approval from shareholders on October 27 last year.
Post merger, CAP is 66.36% owned by Barito Pacific. Singapore-based investment company Temasek via Glazers and Putnam Investment Ltd controls 22.87%m and Marigold Resources Pte Ltd holds 5.52%.
Prajogo owns 1.04% stake, Ibrahim Risjad holds 0.45%, Henry Halim holds 0.06%, and public holders own 3.70%.
CAP is currently holding US$1.5 billion assets or Rp13.5 trillion assets. The company plans to boost production capacity of ethylene, polyethylene, polypropylene, and other petrochemical products.
Chandra Asri Petrochemical is currently holding a debottlenecking production of polypropylene by new machine additional to jack up output to 480,000 tons per annum from 360,000 tons. The company aims to spend Rp300 billion investment. The additional output is scheduled to be commercially operated in March this year.
Along with it, CAP is also planning to enlarge production capacity of ethlene to 1 million tons per annum from 600,000 and polyethlene to 540,000 tons from 320,000 tons in the next 3 to 5 years.
CAP is also planning to construct a butadiene production facility, the first in Indonesia, in June 2011 and to be completed by mid 2013.
With a total investment of US$100 million, the facility of 100,000 tons capacity per annum will be operated by CAP's subsidiary dubbed PT Petrokimia Butadiene Indonesia.

Disclosure: No position at the stock mentioned above.  

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