Halcyon Agri Corporation Limited, one of the world’s largest natural rubber supply chain managers, has signed a conditional sale and purchase agreement in respect of the proposed acquisition of PT Sumber Djantin and PT Sumber Alam for S$105.3 million.
Upon completion, the acquisition will add four Standard Indonesian Rubber factories, located in Pontianak, Indonesia, with a combined licensed annual capacity of 132,000 metric tonnes (“mT”) to Halcyon Agri’s operations. Collectively, the four factories are highly regarded producers of SIR and have a strong track record in delivering quality rubber to the global tyre majors.
Combined with the acquisition of PT Pulau Bintan Djaya, announced on 8 December 2017, Halcyon Agri will operate a total of 19 factories in Indonesia, up from 14 currently. The acquisition of the five new factories will add a total of 192,000 mT to the Group’s annual processing capabilities, pushing the Group’s total annual processing capacity in Indonesia to 877,000 mT, strengthening Halcyon Agri’s competitive edge in the Global Tyre Majors market, and propelling the Group to become the single largest producer of SIR globally.