Indonesia“s Samator Group and its industrial gas company, PT Samator, together with Air Products and Chemicals, Inc. of the United States and its subsidiary company, PT United Air Products Indonesia …
Indonesia“s Samator Group and its industrial gas company, PT Samator, together with Air Products and Chemicals, Inc. of the United States and its subsidiary company, PT United Air Products Indonesia (UAPI), have agreed to form a joint venture company that will supply gases and related equipment to customers throughout the country. This initiative will enable Samator and Air Products to establish a wider presence in Indonesia, a country with one of the highest economic growth rates in south-east Asia and a wealth of natural resources, such as oil and natural gas, which will provide ready markets for the gases and related process equipment from the new joint venture company. Formation of the new 50-50 joint venture company – to be called Samator Indo Air Products (SIAP) – is expected to be completed during the first quarter of 1997. Its headquarters will be in Surabaya, East Java. Mr. Arief Harsono, President Director of Samator, said, “The formation of this new company will combine the existing local market position and geographical strength of Samator with the expertise and strong technology of Air Products and Chemicals, Inc. This combined strength has the potential to place SIAP in the leading position among industrial gas companies in Indonesia.” Mr. Bruce Gibson, President Director of UAPI, commented, “By combining the global customer relationships of Air Products with the superior local reputation and business knowledge of Samator, we will together participate in the industrial gas market in Indonesia which is expected to grow at more than 20% per year.” Mr. Gibson indicated that Samator“s market strength is in Java, Kalimantan and eastern Indonesia, where it operates several industrial gas plants that produce atmospheric gases, carbon dioxide, and hydrogen. The Samator Group has been a privately owned company for more than two decades and has diversified businesses. It operates nine industrial gas plants producing oxygen, nitrogen, argon, carbon dioxide, hydrogen, gas mixtures and acetylene. Air Products first entered Indonesia in 1990 with the formation of UAPI, then a 50-50 joint venture with the Astra Group and now wholly owned by Air Products. UAPI currently owns and operates an air separation facility and hydrogen plant in Merak, West Java. As part of the implementation of this joint venture, SIAP“s first air separation plant is now under construction in Gresik, East Java. This plant, scheduled for completion by the end of this year, will also serve the majority of customers in the steel industry and the merchant market in eastern Indonesia.