VIETNAM: Petronas Chemicals completes divestment of Vietnam PVC subsidiary

The sale was completed some two months ahead of the stipulated timeline, following the parties successfully meeting the conditions of the share purchase agreement signed on 6 Nov 2013.

"This has mutually benefited all parties and I wish PMPC continued success going forward," PCG President and Chief Executive Officer Sazali Hamzah said in a statement.

The performance of PCG's vinyl business had not been satisfactory compared to the Group's other businesses, as it was not as closely integrated within the Group's product value chain.

PCG announced its exit from the vinyl business in October 2012 as part of its portfolio optimisation strategy.

The discontinuation of the vinyl business provides the Group with the opportunity and flexibility to focus on the production of higher margin products within the Group's portfolio.

Subsequently, PCG ceased operations and decommissioned its vinyl chloride monomer (VCM) and polyvinyl chloride (PVC) plants in Malaysia last year.

This led to the divestment of PMPC, which has a production capacity of 100,000 metric tonnes per annum of PVC.

With this sale completion, PMPC ceases to be a subsidiary of PCG and PMPC employees will continue to be employed under the new owners.

Source: "Bernama” (National News Agency of Malaysia), Kuala Lumpur; 13 June 2014
(Syed Rashid Ali, Karachi, Pakistan)