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Indorama Ventures to acquire M&G PET plant in Brazil
16
Mar '18
Courtesy: Indorama
Courtesy: Indorama
Indorama Ventures Public Company Limited (IVL), a global petrochemical producer, has announced that it has entered into an agreement to acquire M&G Polimeros Brazil S.A. in Ipojuca Brazil. The plant is the largest PET facility in Brazil, with a capacity of 550,000 tonnes/ annum. M&G Polimeros Brazil S.A. produces PET resins for packaging applications.

The plant is strategically located and benefits from virtual integration with a manufacturer of Purified Terephthalic Acid (PTA), a key feedstock to PET. The transaction is expected to be completed in second quarter 2018, subject to regulatory approvals.

The acquisition in Brazil is in line with the company’s strategy to further extend its market position, and expand its global footprint in key markets with high growth potential. This strategic position allows Indorama Ventures to deliver products to key customers in Brazil and elsewhere in a cost-effective and efficient manner. Indorama Ventures is well positioned to service its current global client base and M&G’s existing customers once this acquisition is complete and the plant is fully operational. The company expects immediate incremental revenues and cost synergies, driven by a substantial volume increase and potential value add through backward integration.

The acquisition will significantly advance IVL’s strategy in its necessities business, where the company aims to deepen its global footprint and build scale in key markets.

Aloke Lohia, Group CEO of Indorama Ventures, said, “We are pleased to have reached this agreement, and taken significant action to strengthen our capability for profitable growth. Indorama Ventures now has unrivalled scale and global reach, being present in five continents with a uniquely balanced and integrated business model.”

“This is an exciting move for us, reflecting our continued commitment to support our customers using our global scale and local presence. We look forward to capitalising on this new market and opportunities for cross-selling to immediately deliver greater value to existing and new customers, while delivering profitable growth and enhanced shareholder value,” he added. (GK)

Fibre2Fashion News Desk – India


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