SEOUL, Dec. 21 (Yonhap) — South Korean retail giant Lotte said Thursday it has purchased Indonesian synthetic resin makers, the latest in a series of deals meant to tap deeper into the world’s fourth most populous nation.
Lotte Advanced Materials Co., the chemical arm of Lotte, has signed a deal to wholly purchase PT Arbe Styrindo and PT ABS Industri Indonesia.
Lotte did not disclose details on the acquisition price of the two firms, which are controlled by the same main shareholder.
The two firms are the only two Indonesian makers of acrylonitrile butadiene styrene resin widely used in plastic parts in household goods, tech products and automobiles, according to Lotte. Their two factories have been suspended since October due to financial difficulties.
Lotte Advanced Materials said it will focus on normalizing the two plants’ operation and boosting their combined annual production capacity to 73,000 tons from the current 40,000 tons.
Lotte’s goal is to begin commercial production at the facilities from 2019 and reach an annual revenue of 200 billion won (US$185 million) and an operating profit of 15 billion won.
Lotte — South Korea’s fifth-largest conglomerate with sprawling businesses in retail, food and construction — has made some $1.2 billion worth of investment in various sectors of Indonesia, ranging from retail to chemicals and tourism, according to the company.
It currently has 8,000 employees working at 12 of its affiliates in the Southeast Asian country and expects to rack up some 2.5 trillion won in sales this year.