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.