Indorama Ventures PCL (IVL), the mid-stream petrochemical manufacturer, announced that it had completed the deal to acquire a 94.91-per-cent stake in Rayong-based polyethylene terephthalate (PET) producer Bangkok Polyester PLC.
IVL has acquired the stake from Bangkok Cable Company for an undisclosed amount.
Upon the completion of the acquisition, IVL’s production capacity of PET will be boosted by 105,000 tonnes per year. The deal will also increase IVL’s market share of PET in Thailand from 43 per cent to 58 per cent.
IVL’s PET segment represents 50 per cent of the company’s overall production. The segment saw production increase from 2.9 million tonnes in 2013 to 3.1 million tonnes in 2014, a growth of 7 per cent year on year.
Bangkok Polyester is a significant PET manufacturer and exporter to Japan, which is known as the largest PET importer in the world. “This acquisition will make us more outstanding in the industry, and help us expand our customer base in Japan where we are very competitive because of the tax exemption between Thailand and Japan,” said IVL’s chief executive Aloke Lohia.
The acquisition will also help IVL boost its market share in Thailand and Asia as well as integrate its supply chain because the acquired plant is located near its PTA plant in Rayong.
IVL stock increased 1.10 baht per share from its open today to 23.90 baht at noon (local time).