Written by Lam Jian Wyn
Friday, 20 November 2009 13:23
KUALA LUMPUR: In a bid to boost its Indonesian presence, chemical distributor Samchem Holdings Bhd will form a subsidiary company with Indonesian partner PT Prasandha Byantara Abadi (PBA).
Samchem Holdings announced today that it entered a strategic partnership with PBA, also a chemical distributor, to form a new similar setup based in Jakarta.
Samchem chief executive officer (CEO) Ng Thin Poh said that operations are slated to begin in the first quarter of 2010, and will be helmed by PBA president Herisun Hassan.
The partnership would allow the new company to benefit from Samchem's 10 years of experience in the industry, as well as PBA's distribution network in several major cities, Ng told reporters after the signing ceremony here today.
Ng added that PBA -- in which Herisun owns a 50% stake -- would be wound down and that key personnel would be absorbed into the new company.
He added that Samchem Holdings will have a 60% stake in the subsidiary, while Herisun will hold the remaining 40%.
The venture will have a paid-up capital of US$1 million, while Samchem Holdings will purchase US$1.6 million worth of fixed assets.
The new venture is Samchem Holdings' second foray in Indonesia -- paint, varnish and lacquer manufacturer PT Multi Square was set up in an earlier joint venture.
Samchem Holdings has also been exporting polyurethane chemicals to Indonesia since 2004.
The company has also established its presence in China and Vietnam.
Ng anticipates revenue of RM100 million from the Indonesian market by 2011, adding that the company expects a third of their revenue to be derived from operations abroad.
