Titan confirms Peni purchase

Titan confirms Peni purchase

KUALA LUMPUR: Titan Chemicals Corp.'s 100 percent owned Titan Petchem (Malaysia) Sdn. Bhd. unit will buy all of Indonesian polyethylene producer PT Petrokimia Nusantara Interindo (Peni), Bernama news agency said on Thursday.

Citing Titan Chemicals managing director Donald Condon, the report said the purchase would raise Titan's polyolefin capacity almost 50 percent.

"Our current production capacity is near its limits and we are now looking at focusing on profitable growth, and the proposed purchase of PT Peni is the first step toward these efforts," Condon was quoted as saying.

PT Peni has an annual capacity of 450,000 metric tons of polyethylene, Condon said.

Bernama did not say how much the deal is worth, but local newspapers earlier on Thursday said the Indonesian purchase would cost Titan between US$23 million and $50 million.

Titan suspended trading in its shares midday Wednesday, pending the announcement of a "substantial acquisition." The company produces olefins and polyolefins, materials used in a broad range of plastics and fibers. -- Dow Jones