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In-depth Report - Daewoo International Jumps the Gun on Reporting PTA 'Supply Contract'
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In-depth Report - Daewoo International Jumps the Gun on Reporting PTA 'Supply Contract'
  • By Jung Min-hee
  • September 24, 2015, 05:30
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Daewoo International Corporation ( POSCO Daewoo) President Kim Yeong-sang (2nd from right) poses for a photo while shaking the hand of DKA Agarwal, CEO of the PET business of Indorama Ventures. It is unclear what the handshake signifies.
Daewoo International Corporation ( POSCO Daewoo) President Kim Yeong-sang (2nd from right) poses for a photo while shaking the hand of DKA Agarwal, CEO of the PET business of Indorama Ventures. It is unclear what the handshake signifies.

 

Earlier this month, Daewoo International Corporation (POSCO Daewoo) issued a press release claiming that it had secured a US$200 million supply contract with Thailand-based Indorama Ventures for Indorama to supply purified terephthalic acid (PTA) chips in 2016. Several news outlets, including this one, reported the contract as if it existed. Unfortunately, when BusinessKorea reached out to Indorama Ventures for additional information, the company denied that any deal had been made.

“Indorama Ventures has no commitment, obligation or understanding with Daewoo International as on date for the off take or sale or purchase of any PTA during the year 2016,” said an Indorama Ventures official.

When asked about this inconsistency in message, a Daewoo spokesperson said that Daewoo International had signed an MOU with Indorama Ventures, and that the photo of the officials of the two companies was a photo of an MOU signing ceremony.

However, the Indorama official told a different story about the photo, saying, “During the recent visit of Daewoo’s CEO to our offices, Indorama signed a minutes of the meeting, which basically talks about willingness to enhance the cooperation between our companies in the future, without any commitment or obligation whatsoever being agreed upon.”

Daewoo International had no further comment on the issue, continuing to insist on the existence of an MOU between the two companies. It should be noted that October is fast approaching, which will leave Daewoo International with only 3 months of PTA supply from Indorama Ventures.

BusinessKorea would like to apologize to its readers for printing misleading information.