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IVL acquires BP Chemical's PX & PTA facility
07
Jan '16
Thailand based Indorama Ventures Ltd (IVL) said it will acquire BP Chemical's Decatur, Alabama business, which has a total capacity of 1.8 million tons per of integrated Paraxylene and PTA manufacturing.

“It as well is the world's only commercial plant to manufacture NDC, a specialty chemical used in performance polymers and films for application such as smart-phone screens,” an IVL press release stated.

The transaction is expected to complete in the first half of 2016 and is subject to the usual regulatory approvals.

Aloke Lohia, Group CEO of IVL said, “2015 was a truly transformative year for IVL and the transactions signed up are a game changer for the industry.”

“Our industry faces continually new challenges and IVL has taken these times as an opportunity to remain focused and surge ahead to deliver a distinct and compelling investment platform,” he added.

“This will deliver scale advantages, technology ownership and innovative products which our customers can rely upon, creating the IVL differentiation,” Lohia informed.

IVL added that it is firmly on track to fulfill on its 2015 capital day announcement, to achieve double-digit EBITDA margins and 2X core EBITDA growth by the end of 2018 compared with 2014.

“At the same time IVL aspires to achieve 4X core EPS growth by end 2018 over 2014,” the company informed.

“The acquisitions effected in 2015 will be major accelerators in IVL's ongoing transformation, through which we are creating significant growth and portfolio enhancement,” IVL stated.

BP Alabama, USA offers feedstock independence and HVA growth, while, Micropet, India provides core business entry in to the fastest growth market with the largest population.

CEPSA, Spain delivers feedstock independence, EU wide coverage of PET and maiden entry into IPA, an HVA business enhancement.

The ethylene cracker in Louisiana, USA offers feedstock independence and leverage on shale gas economics, while CEPSA, Canada provides feedstock independence in North America.

The acquisition of Bangkok Polyester, Thailand, consolidates core PET business and supply chain integration with captive PTA.

Performance Fiber in China offers decades of superior polyester tire cord brand in the largest growth market for automobiles, with supply chain economics through captive PET polymer.

According to IVL, acquiring Polyplex PET in Turkey also consolidates core PET business in an emerging market and Europe, Middle East and Africa (EMEA) wide coverage.

“Over the next 12 months we will create significant near-term value through substantial cost synergies and over the mid-term we can expect additional upside from margin growth from internal rather than external forces,” Lohia remarked. (AR)

Fibre2Fashion News Desk – India

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