IVL closes deals with INVISTA & SK Chemicals
Indorama Ventures Public Company Limited, the world's leading vertically integrated Polyester Value Chain producer, has completed the acquisition of two major deals that were announced at the end of 2010. In November, 2010, the IVL agreed to acquire from INVISTA, their Polyester resins and Polyester staple assets located at Spartanburg, South Carolina, USA and in Querétaro, Mexico.
That deal has now been concluded and the company will become the new owners. Both sites produce a wide range of PET, Specialty Polymers, Fibers and Film. The total capacity is 470,000 tons per annum in Spartanburg and 535,000 tons per annum in Querétaro. This acquisition is expected to be value accretive to earnings and complement the Company's strategy to increase its footprint into new higher growth markets of Central and Latin America. Strong R&D set up in the plants will enable IVL to provide innovative products to its customers.
The other acquisition concluded was South Korea's SK Chemicals entire issued capital of SK Eurochem Sp. z o.o., in Poland and PT SK Keris together with its subsidiary PT SK Fiber in Indonesia. This acquisition was first announced in December 2010. SK Eurochem Sp. z o.o. in Poland is a PET chips manufacturing facility having a capacity of 140,000 tons per annum.
PT SK Keris, Indonesia is a PET Chips and Polyester Filament Yarn manufacturing facility with a combined capacity of 160,000 tons per annum. PT SK Fiber Indonesia is a Polyester Filament Yarn manufacturing facility with a capacity of 36,000 tons per annum. The acquisition in Poland is virtually integrated with a third party supplier of Purified Terephthalic Acid (PTA), further consolidating the Company's low cost structure.
Mr. Aloke Lohia, Group CEO said, "These acquisitions allow us to offer a broader range of specialist polymers and fibers to serve customers in Asia and the Americas. The entry into Latin America is significant in that there are a number of emerging economies that we will be able to enter for the first time. We will have research and development facilities that will also permit us to develop new products, provide intellectual property and use our unique global footprint to provide specialty products to a greater number of customers.
Our reach into Southeast Asia will now extensively cover the populous Indonesian archipelago and Poland provides us an entry point into Eastern Europe, where we foresee strong growth in the future. "With these assets, IVL is the world's largest PET resin company and a leader in the whole Polyester Value Chain" Lohia said.
Indorama Ventures Public Company Limited, listed in Thailand is a leading producer in the polyester value chain in Thailand with strong global network and manufacturing across Asia, Europe and North America. Its products serve major players in diversified end use markets, including food, beverages, personal and home care, health care, automotives, textile, andindustrial. The company's main products are PTA, PET and Polyester fibre, which are distributed across the world. IVL has approximately 5,900 employees worldwide and annual consolidated revenue of $3 billion in 2010.
Indorama Ventures Public Company Limited