Indorama Ventures will also invest in another strategic project to make 16,000 tons per year of high quality bi-component yarns, a speciality product in the fibers industry, at its recently acquired Indorama Ventures Indonesia (IVI) plant (formerly SK Keris) in Tangerang, Indonesia. IVI owns unique technology to make Bi-component yarns (known as FINNE) through a single step process. The company enjoys significant competitive advantage over companies who currently use a two step process and has secured a leading market share in this segment.
Mr. Lohia noted: "Competition has not been able to match this product and there is unmet demand in the market. We have developed a new generation called FINNE (INOV) to enhance our lead over the competition due to its significant cost advantage and superior attributes. The product is a speciality line that is very popular for outerwear and has unique properties of drape and touch which few competitors can offer, giving it a good potential for growth. The bi-component and FINNE projects will both offer Indorama Ventures a higher margin and therefore boost our revenues and earnings while securing the company against any volatility in raw material costs.
"We expect to commence operations in the first quarter of 2013, bringing our total new investments in Thailand and Indonesia to $85 million, which will provide further value-added specialities to our Aspiration 2014 growth plan." Lohia said.