Chandra Asri expands presence with Chevron Phillips acquisition
- Aster Chemicals and Energy, in partnership with Glencore, has acquired a polyethylene manufacturing facility in Singapore.
- The facility holds an annual production capacity of 400,000 tons of high-density polyethylene.
- This acquisition reinforces Chandra Asri's strategic position in the Southeast Asian petrochemical hub.
In Southeast Asia, Chandra Asri, a major petrochemical player backed by Indonesian billionaire Prajogo Pangestu, has expanded its operations through a new joint venture with commodities trader Glencore. This recent strategic move involved the acquisition of Chevron Phillips Singapore Chemicals’ polyethylene manufacturing plant. The facility, renowned for its annual production of 400,000 tons of high-density polyethylene used in household products like plastic bottles and food containers, enhances Aster Chemicals and Energy’s capabilities in the competitive petrochemical market. The deal announced by Erwin Ciputra, the group CEO, illustrates a significant milestone for Aster, aiming to bolster its operational goals and customer offerings in the region. While the financial details of the transaction have not been disclosed, the acquisition marks a crucial development for the joint venture just after Chandra Asri and Glencore had the recent success of acquiring Shell’s refinery and petrochemical assets in Singapore. This series of acquisitions indicates an aggressive expansion strategy aimed at strengthening their foothold in the petrochemical sector in Singapore, a prominent Southeast Asian hub. Additionally, Chandra Asri, listed in Jakarta and originating as a timber-focused firm, has evolved under the transformation led by Prajogo Pangestu into a heavyweight in the energy and petrochemical industries. With a substantial net worth currently estimated at $19.8 billion, Pangestu is among Indonesia's wealthiest individuals, diversifying into sectors such as coal mining and renewable energy as evidenced by his stakes in Petrindo Jaya Kreasi and Barito Renewables, which entered the public market in 2023. This latest acquisition not only enhances Aster’s production capabilities but also signifies the ongoing consolidation trends within the petrochemical industry as companies look to innovate and differentiate themselves. The competitive landscape in Singapore is expected to evolve further as Aster continues to leverage its strategic resources. Furthermore, the increased capacity from this deal will likely enable Aster to meet the escalating demand for polyethylene in Southeast Asia, reaffirming its strategic direction in the region’s petrochemical market.