Korean retail giant Lotte said on Dec. 21 it has purchased two Indonesian synthetic resin makers.
Lotte Advanced Materials, the chemical arm of Lotte, has signed a deal to wholly purchase PT Arbe Styrindo and PT ABS Industri Indonesia.
Lotte did not disclose details on the acquisition price of the two firms, which are controlled by the same main shareholder.
The two firms are the only two Indonesian makers of acrylonitrile butadiene styrene resin widely used in plastic parts in household goods, tech products and automobiles, according to Lotte. Their two factories have been suspended since October due to financial difficulties.
Lotte Advanced Materials said it will focus on normalizing the two plants‘ operation and boosting their combined annual production capacity to 73,000 tons from the current 40,000 tons.
Lotte’s goal is to begin commercial production at the facilities from 2019 and reach an annual revenue of 200 billion won (US$185 million) and an operating profit of 15 billion won.
By Alex Lee and newswires (firstname.lastname@example.org