AkzoNobel has agreed to divest its 75 per cent stake in the PTA activities of its Chemicals Pakistan business to Korean company KP Chemical Corporation (KPC).
Financial details of the deal 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 its acquisition of ICI.
The company has a site in
‘In spite of good performance and a dedicated team, the PTA activities and its future requirements do not fit with AkzoNobel’s strategic priorities,’ said Rob Frohn, the AkzoNobel board member responsible for specialty chemicals.
‘KP Chemical – which is looking to expand its 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-fibre industry and polyester resins used in the manufacture of PET packaging.
The transaction is expected to be completed in the fourth quarter of 2009.