SINGAPORE—Natural rubber supply group Halcyon Agri Corp. Ltd. has completed the purchase of four Indonesian rubber processing factories for $65.5 million, the company announced April 23. The price is less than the initial agreement in January with PT Sumber Djantin and PT Sumber Alam, which assumed a sum of about $80 million for the purchase.
The acquisition includes the purchase of all the issued and paid-up shares in the two companies via Halcyon's Anson and Hok Tong subsidiaries.
The deal adds four standard Indonesian rubber (SIR) factories, located in Pontianak, with a combined licensed annual capacity of 132,000 metric tons per year, to Halcyon's operations.
Following completion, PTSD and PTSA have become indirectly wholly-owned subsidiaries of Halcyon Agri.
Combined with the acquisition of PT Pulau Bintan Djaya, announced on Dec. 8, Halcyon will operate a total of 19 factories in Indonesia.
The addition of the new factories will add a total of 192,000 tons per year to the group's annual processing capabilities, raising capacity in Indonesia to 877,000 tons each year.
According to Halcyon, the acquisitions are strengthening its competitive edge in the global tire majors market, and "propelling the group to become the single largest producer of SIR globally."
Future prospects natural rubber supply will be discussed and debated at Future Tire Conference 2018, taking place May 30-31, during the Tire Cologne international trade fair in Cologne, Germany. For more information visit tyre-conferences/futuretire2018.