Indorama Ventures to raise capacity to 10mn tons

22 Mar '12

4 min read

The sixty-year-old Mr. Lohia also has plans beyond 2014. However, he quickly adds that these projects are still at analysis stage and no decision has been taken as yet on the same. “We are considering addition of another 432,000 tons of PET capacity at one of our PET facilities in the USA. Although we have high market share, we see the USA as our best market with the highest margins and will expand our capacity in that country to meet the future demand,” he avers.

“We are also exploring a possibility of setting up a fully-integrated PX-PTA-PET plant in the Middle East, because of the low cost of raw materials and growing demand. Similarly, we are analyzing the possibility of setting up a fully-integrated PTA-PET-PSF plant in India to take advantage of the fast growth expected from this market,” he mentions.

Finally, he discloses, “We are actively considering setting up of an Ethylene/EO/MEG facility in the USA. We are about to sign an agreement with a potential partner to commence a feasibility study that would determine the size and investment required. We see this as a stronger entry onto a fast-growing and high margin industry.”

Talking about the impact of capacity expansion on revenues of Indorama Ventures, he projects, “We would expect to have earnings before interest, taxes, depreciation, and amortization (EBITDA) of around US$ 1.1 billion by 2014 and a net debt to equity of less than 1:1.”

Fibre2fashion News Desk - India

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