Mitsubishi Chemical Group Corporation resolved at its Executive Officers' Meeting held on December 22 that it will transfer shares of PT Mitsubishi Chemical Indonesia (MCCI), which operates the pure terephthalic acid (PTA) business to PT Lintas Citra Pratama.

The two group companies of Mitsubishi Chemical Group, Mitsubishi Chemical Corporation and PT Lintas Buana Kasei (LBK) own the shares of MCCI.

MCCI has been manufacturing and selling PTA in Indonesia since its establishment in 1991. PTA is the main raw material for polyester products (fibers, PET bottles, films).

Although Indonesia's PTA market and business are stable and strong, Mitsubishi Chemical Group has continued to consider the direction of its business while promoting portfolio management focused on market growth, competitiveness, and sustainability based on its management policyof "Forging the future".

Under these circumstances, affiliates of PT Lintas Citra Pratama approached Mitsubishi Chemical Group asking about the assignment of the said business. Affiliates of PT Lintas Citra Pratama has a plan to commercialize paraxylene, the main raw material for PTA, in South East Asia.

“We believe that this project will allow MCCI to further strengthen its competitiveness under the best owner, who operates the business through vertical integration from the raw material paraxylene to PTA, and that the company will continue to develop and grow its business. Thus, we have agreed to assign the shares of MCCI to PT Lintas Citra Pratama,” Mitsubishi Chemical Group said in a statement.