Pupuk Indonesia Buys Japanese Ammonia Plant
9 May 2014 18:12 WIB
TEMPO.CO, Jakarta - State-owned fertilizer producer Pupuk Indonesia Holding Company finalized the acquisition of Japan's Mitsui & Co. ammonia fertilizer plant for 1.5 trillion rupiah (US$129 million). The plant, PT Kaltim Pasifik Amoniak, is one of the world's largest ammonia producers, based in Bontang, East Kalimantan.
State-Owned Enterprises Minister Dahlan Iskan said the acquisition value was less than the contract value of Rp4 trillion. "The plant has a production capacity of 660 thousand tons," he said in Jakarta yesterday.
The acquisition transaction was done by Pupuk Indonesia's subsidiary, PT Pupuk Kalimantan Timur (Pupuk Kaltim). The head of agreement was signed in November 2013. Prior to the acquisition, Kaltiom Pasifik Amoniak was a joint venture of Mitsui & Co. Ltd. and Toyota Tsusho Japan with 75:25 shareholding.
Pupuk Kaltim's president director Aas Asikin Idat said that with the additional capacity of 2,000 tons per day from Kaltim Pasifik, the company's ammonia production capacity will increase by 35 percent to 2.51 million tons per year. In addition to ammonia, Pupuk Kaltim produces 2.98 million tons of urea and 350,000 tons of NPK per year.
ANANDA PUTRI