Thailand’s Indorama draws up $4.8b investment plan; to tread M&A, JV route for growth

Image from Indorama's website

Thailand’s integrated petrochemical producer Indorama Ventures PCL (IVL) has set an investment budget of $4.8 billion during 2015-18, which it will mostly spend on acquisitions or forging joint ventures to spur business expansion.

Dilip Kumar Agarwal, Chief Executive Officer of feedstock and PET business, told reporters, it has allocated $1.3 billion for acquiring one or two companies next year, which includes Cepsa Spain, and the improvement of the gas cracker in the United States. The gas cracker has a combined production capacity of ethylene and propylene of 400,000 tonnes per year.

The remaining $3.5 billion will be used for mergers and acquisition, joint ventures, expansion of production capacity and annual maintenance.

He said, the company was considering three M&A opportunities at present.

First, it is looking at a merger downstream products maker Swift Project, expected to close this year, .

The other two are Alpha Pet2 project and Union project, scheduled to be finalised in 2016 and 2017, respectively.

“Our main strategy is to focus on acquiring high-valued products. With this strategy, we will improve our profit margin and sustain our growth with no effect from seasonal changes,” he cited.

Also Read: Thailand’s IVL plans to buy a PTA plant in Spain

Thailand Dealbook: PDI to form JV with EU firm for recycle biz; Thailand’s IVL to buy ethylene cracker in US

Thailand based IVL closes acquisition of Bangkok Polyester

 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.