AkzoNobel has agreed to divest its 75 percent stake in the PTA activities of its Chemicals Pakistan business to Korean company KP Chemical Corporation (KPC). Financial details were not disclosed.
The holding in Pakistan PTA Limited - which is listed on the Karachi Stock Exchange - was acquired by AkzoNobel in 2008 as part of the acquisition of ICI. The company has a site in Karachi and around 200 employees. The transaction is expected to be completed in the fourth quarter of 2009.
"In spite of good performance and a dedicated team, the PTA activities and its future requirements do not fit with AkzoNobel's strategic priorities," explained Rob Frohn, the AkzoNobel Board member responsible for Specialty Chemicals. "KP Chemical - who are looking to expand their PTA capacity and geographic reach - will be a better match for the business going forward."
PTA (Pure Terephthalic Acid) is an essential raw material for the polyester fiber industry and polyester resins used in the manufacture of PET packaging.
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