Engineering/Mergers and Acquisitions Toyo Engineering Acquires Large Shares of Indonesian Engineering Company
Japanese Toyo Engineering taps the Indonesian market by acquiring vast shares of regional engineering company IKPT. Indonesia, currently the world's fourth most populated state, is expected to invest large sums in infrastructure and industrial development in the near future.
Tokyo/Japan – Toyo Engineering has taken huge interest in Indonesia by acquiring large shares of one of the country's major engineering companies, Inti Karya Persada Teknik (IKPT). The Japanese engineering firm now owns a 47% minority share, in accordance with its group strategy of expanding and reinforcing the regional EPC network among emerging countries and in consideration of the potential of Indonesia in particular, company officials state.
With an established presence and a long reputation for EPC (engineering, procurement and construction) projects in the industrial sectors of oil and gas, petrochemical and chemical, IKPT expects to profit from future investments in the sector. Originally founded in 1982, the company has maintained a good relationship with Toyo for over 20 years since the first collaboration in EPC of fertilizer plant. Currently, Toyo and IKPT are jointly undertaking construction of the large-scale fertilizer plant in Indonesia.
The development of infrastructure in Indonesia is a target of Japan’s public-private joint promotion to export a package of Japanese products, technologies and know-how. As such potential and positive outlook of Indonesian economy is widely acknowledged in the world, the country is now attracting more foreign investments of not only oil & gas companies but manufacturers planning to establish overseas production facilities in Indonesia. Toyo’s investment in and enhancement of collaboration with IKPT will expand business in Indonesia of both companies with their technologies, know-how and human resources shared by each other.
Indonesia, the world's fourth most populated country with a population of 240 million, has achieved an outstandingly successful growth during the last years: The economy grew by more than 6% in 2010 and 2011, despite the current global instability. The recent slowdown of global economy has affected the country less than other emerging countries. To keep and boost this economic growth, the country needs to accelerate development of infrastructure facilities such as power plants and transportation systems.