Singapore – Natural rubber supply group Halcyon Agri Corp. Ltd has signed an agreement to acquire PT Sumber Djantin and PT Sumber Alam for S$105.3 million (€65.2 million), Halcyon announced 15 Jan.
The proposed acquisition involves the purchase of 100% of the issued and paid-up shares in the two companies via Halcyon’s Anson and Hok Tong subsidiaries.
The deal, said Halcyon, will add four standard Indonesian rubber (SIR) factories, located in Pontianak, with a combined licensed annual capacity of 132 kilotonnes per annum (ktpa) to Halcyon’s operations.
Combined with the acquisition of PT Pulau Bintan Djaya, announced on 8 Dec 2017, Halcyon will operate a total of 19 factories in Indonesia, up from 14 currently.
The addition of the five new factories will add a total of 192ktpa to the group’s annual processing capabilities and raise capacity in Indonesia to 877ktpa.
The strategy is “strengthening Halcyon Agri’s competitive edge in the global tire majors market, and propelling the group to become the single largest producer of SIR globally,” Halcyon stated.