SCC Invests ฿82M. in a JV with BERJAYA in Indonesia to Produce PVC Finished Products
SCC Invests ฿82M. in a JV with “BERJAYA” in Indonesia to Produce PVC Finished Products
SCC Invests ฿82M. in a JV with “BERJAYA” in Indonesia to Produce PVC Finished Products
24 พ.ค. 2562

The Siam Cement Public Company Limited (SCC) has announced a subsidiary company which is Nawaplastic Industries (Saraburi) Co., Ltd. (NPI), a wholly owned subsidiary of Thai Plastic and Chemicals Public Company Limited (TPC) holds 99.81% directly and indirectly owned subsidiary of SCC, established a joint-venture company with PT. Berjaya Tigabintang (BERJAYA) namely PT. Berjaya Nawaplastic Indonesia (BNI). 
BNI will be the platform for the production of downstream PVC finished products including pipes and fittings in Indonesia. The total value of SCC investment is 33,150 million Rupiah (or approximately 82 million Baht) and SCC will host a 51% indirect stake, while Berjaya will hold the remaining 49% stake. 
BNI, a new subsidiary of SCC, will create synergy between SCC and Berjaya’s operations in Indonesia. The capacity of this joint venture is approximately 20,000 tons/year of PVC finished products in total.
Berjaya is an Indonesian producer of PVC finished products and is also an existing customer of TPC’s PVC resin products as its main feedstock. In 2017, it registered revenue from sales of approximately 146 million Baht, and had asset of approximately 122 million Baht. TPC is a regional integrated producer of PVC resin and finished products, with operations in Thailand, Vietnam and Indonesia. 
This transaction will allow TPC to expand its regional ASEAN scope and move further into the downstream space in the rapidly growing in Indonesian market, and result in TPC’s total downstream of 430,000 tons/year from 410,000 tons/year, while its total upstream PVC resin products capacity remains at 886,000 tons/year. This investment is considered an asset acquisition transaction. The size of this transaction is 0.01% of total assets stated in SCC consolidated financial statements as at March 31, 2019, and when combined with those in the past six months prior to the date of this transaction, the total size is 7.87%. Thus, the disclosure of this transaction is not required pursuant to disclosure rule for the acquisition and disposition of assets. This transaction is not a connected transaction.