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

Visual from company website

Thailand-listed, integrated petrochemical producer Indorama Ventures PCL (IVL) is negotiating to acquire another polyester materials facility from Cia Espanola de Petroleos SAU. This acquisition will help to expand the company’s business in Europe and North America.

Sources in know of the deal, who asked not to be named, told Bloomberg that Indorama is negotiating to acquire Spain-based plant San Roque. The plant generated an annual sales of around $500 million and is owned by with Abu Dhabi’s International Petroleum Investment Co, the owner of Cepsa. However, the deal has not reached the final agreement yet, cited the sources.

IVL has been eyeing plants producing purified terephthalic acid (PTA) assets, used to produce polyesters and plastics in bottles and packaging industries, to boost the competitiveness in western markets.

DEALSTREETASIA has tried to reach the executives at IVL, but they declined to comment.

In the early of this week, it has just announced that its subsidiary Indorama Netherlands BV has signed to acquire 100 per cent stake in the PTA business of CEPSA Chimie Montreal sec in Canada from Cepsa Química SA and IQ CHIMIE Inc.

CEPSA Chimie Montréal sec is the largest and the only PTA manufacturing facility in Canada with an annual capacity of 600,000 tonnes and one of the three merchant PTA producers in North America.

IVL does not disclose the value of the acquisition of CEPTA, but the sources cited that San Roque’s plant will be a larger investment if it can close the deal.

The acquisition is in line with IVL’s strategy to expand in its core businesses, provide PTA integration to its existing PET and fiber assets and secure feedstock supplies.

IVL stock was up 25 satang today from 26.25 baht per share in its previous close.

Related stories:

Thailand’s Indorama to acquires PET maker

Thailand’s Indorama sets up 2 JVs in Mexico

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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.