Indorama Ventures Pcl (IVL), a Thai-listed chemical producer, has entered into agreements to acquire the PET plants in the United States and Germany for an undisclosed sum, according to the company’s statements last week.
The plants it is acquiring include a PET recycling facility in Alabama from Custom Polymers PET with an annual capacity of 31,000 tonnes and INVISTA Resins & Fibers GmbH, which owns a high value-added PET production plant in Gersthofen, Germany, with a total capacity of 282,000 tonnes per annum.
Both acquisitions will foster IVL’s business and help expand its footprint in the barrier resins and recycled PET material markets globally.
“We are already capitalising on the opportunities in the U.S. market, one of the largest barrier resins markets in the world – through our existing OXYCLEAR® Barrier PET licence in America’s. This strategic acquisition will evolve IVL to the next level of success by taking advantage of opportunities in global markets,” Aloke Lohia, Group CEO of Indorama Ventures said, in the statement.
Meanwhile, IVL cited that despite the fluctuations in the quality of post-consumer feedstock, Custom Polymer’s recycling plant can make recycled PET material to serve the needs in packaging and fiber industry. Post the acquisition, IVL will have footprint in multiple locations in Europe, Mexico, Thailand and the United States.
The acquisition in Germany is expected to be completed in the first quarter of 2019, subject to regulatory approvals.
IVL currently has a global manufacturing footprint across Africa, Asia, Europe and the US with around 16,000 employees worldwide. It posted a total revenue of 259.42 billion baht ($8.05 billion) with a net profit of 24.11 billion baht ($747.70 million) for the first three quarters of 2018.