(Bangkok, 16 December 2013) PTT Global Chemical Public Company Limited (PTTGC) and PT Pertamina (Persero) signed Marketing and Trading-Joint Venture Agreements (Marketing & Trading JVA) to establish a joint venture company in Indonesia. The JV Company is targeted to seize the Indonesian domestic petrochemical market prior to the plan of world scale petrochemical complex development that expected to start its operation in 2018.
Apart from the recent signing of Manufacturing Joint Venture-Heads of Agreement in December 10th, 2013, in Jakarta, PTTGC, the Thai leading Petrochemical producer and Pertamina, the Indonesian national energy company, have also advanced its partnership by signing the Marketing and Trading JVA for merging and expanding their polymer sales and distribution in Indonesia's market. The JVA will enable an establishment of joint venture company to serve a huge number of customers and to better accessing the market, prior to the incorporation of developing the petrochemical complex in Indonesia. The joint venture agreement has already been signed and is subject to further regulatory approvals for the joint venture company incorporation within the first quarter of next year.
Bowon Vongsinudom, President and CEO of PTTGC, stated, "Today's signing marks another significant step forward for PTTGC's and Pertamina's commitment to strenghten our partnership for petrochemical business development in Indonesia. I'm truly delighted to see these progresses that we have made, and most impressed with this line-up of activities which no doubt will energize and vitalize the partnership between PTTGC and Pertamina. The partnership could build a venture that is well positioned in creating value for every end, especially for the Indonesian customers. The joint venture company business plan has been derived from the intensive market survey conducted jointly in the earlier stage."
"Following the HOA signing last April for the potential collaboration, PTTGC has supported Pertamina with our polymer product to conduct their sales and marketing activities in Indonesia. We also shared with Pertamina our market and products knowledge, in order to scale up Pertamina's advancement on petrochemical business. On top of the gradually increasing volume of material supply from PTTGC, the joint venture company will also market Pertamina's polypropylene, produced in Plaju facility, fulfilling domestic needs and ramping up its foothold in this promising market." Said Bowon Vongsinudom.
Hanung Budya, Marketing and Trading Director of Pertamina, stated, "As Karen, Pertamina President and CEO said earlier this year in the HOA signing ceremony last April, Indonesia has the best business potential for petrochemical product marketing in this region, the size of the unmet demand, supplied by imported products at the amount of US$5 billion per year and it's time for us to grab this opportunity. Here we come to materialize what we aimed for. The establishment of this marketing and trading joint venture company is definitely my pride and clearly in line with Pertamina's strategy in growing the downstream business, especially for petrochemical."
"Having PTTGC on board, as a strategic partner, we believe that they could share its strong experience in the business. Today, I can confirm that PTTGC is truly the respectable and trustful partner. The joint project team has been working hard to meet the aggressive timeline. As a result, the cooperation between the two parties has made another key milestone of achievement." added Hanung Budya.
Pertamina owns and operates 6 refineries throughout Indonesia. With the total capacity of around 1 million Barrel Crude Oil per day, it is ranked the 5th largest in Asia. In this regard, it has tremendous potential to integrate refinery and petrochemical business hence adds more values to the natural resources of Indonesia. With these advantages, Pertamina is determined to be a major player in Indonesia as well as in the region.
PTT Global Chemical, as Chemical Flagship of the PTT Group, with the combined chemical / petrochemical capacity of 8.72 million tons per year and crude oil / condensate distillation capacity of 280,000 barrels per day. The Company has been expanding its business into the specialties and green chemicals through a number of oversea strategic acquisitions. Such investments also clearly represent PTT Global Chemical's growth aspiration to expand its business internationally.