Four Indonesian crumb rubber plants will be purchased for $105.3 million by natural rubber producer, Halcyon Agri Corporation.

On December 5, the corporation entered into a memorandum agreement, which already legally obligates two vendors, Sjahrir Iskandar and Liauw Chiang Sioe, to allow the purchase of the total stake in PT Sumber Alam (PTSA) and PT Sumber Djantin (PTSD).

The four factories are based at West Kalimantan and can manufacture a variety of grades of Standard Indonesian Rubber. A total annual licensed export capacity has been estimated at 132,000 tons.

The scale and scope of Halcyon Agri’s natural rubber recycling sector will increase as a result of the purchase, and its overall annual processing capacity will reach the figure of 1.55 million tons. The company will gain the status of the biggest crumb rubber manufacturer and exporter in Indonesia.

According to the Halcyon Agri representatives, the new plants will complement the existing Indonesian operations of the company in Pontiak, and they are located in close proximity. The facilities are anticipated to develop synergic benefits thanks to shared commercial infrastructure, partnerships with suppliers and by acquiring the most efficient practices and economies.

Article Source: Rubber Journal Asia