SINGAPORE—Halcyon Agri Corp. Ltd., a major natural rubber supply chain manager based in Singapore, has signed a conditional sale and purchase agreement to acquire two Indonesian NR producing companies for $79.5 million.
Once the acquisition is completed, Halcyon Agri will be the world's largest producer of Standard Indonesian Rubber (SIR), Halcyon Agri said in a Jan. 15 press release.
SIR 20 is the standard NR grade used by most U.S. tire manufacturers.
The acquisition of PT Sumber Djantin and PT Sumber Alam will bring Halcyon Agri four SIR factories in Pontianak, Indonesia, with a combined annual production capacity of 132,000 metric tons, Halcyon Agri said.
Combined with Halcyon Agri's acquisition of PT Pulau Bintan Djaya on Dec. 8, the company will have 19 SIR factories in Indonesia, up from its current number of 14, according to the press release.
The five new factories will add annual capacity of 192,000 metric tons to Halcyon Agri's production, bringing its total annual NR capacity in Indonesia to 877,000 metric tons, the company said.
Halcyon Agri owns 38 NR processing plants in most major rubber-producing regions, the company said. It produces sustainable NR under its proprietary Heveapro brand, and has production capacity of 1.63 million tons per year, it said.