The deal is part of Indorama Ventures Public’s plan to invest significantly in recycling over the next five years
Indorama Ventures Holdings, an indirect subsidiary of Indorama Ventures Public (IVL), has acquired 100% equity stake in Green Fiber International (GFI) from LQ.
US-based GFI operates a plastics recycling facility in Fontana, California.
GFI’s facility produces recycled polyethylene terephthalate (rPET) flake
GFI’s plastics recycling facility is involved in the production of recycled polyethylene terephthalate (rPET) flake. The facility has a combined capacity of 40,000 tonnes per annum.
The acquisition of GFI is in-line with the IVL’s long-term sustainability objectives and forms part of the firm’s announced plan to invest more in recycling over the next five years.
The company said that the facility is located close to a large supply of recovered PET bottles on the US West Coast, providing new opportunities to meet the increasing demand for rPET in more sustainable packaging solutions.
IVL also noted that the value of the acquisition, calculated in accordance with the regulations of the Capital Market Supervisory Board and the Stock Exchange of Thailand, is less than 15% and the total size of all transactions in the past six months also does not exceed the 15% threshold limits as prescribed in the regulations.
In December 2018, IVL agreed to acquire Germany-based PET packaging firm Invista Resins & Fibers. The deal added Invista’s Gersthofen value-added PET manufacturing facility to Indorama Ventures portfolio as well as support its strategy to offer differentiated solutions in both packaging and in industrial fibres.
In November same year, Indorama Ventures purchased a 74% stake in Egyptian firm Medco Plast for Packing and Packaging Systems from Middle East Glass Manufacturing (MEG) and the Samaha family.
Medco Plast is engaged in the manufacturing of recyclable PET performs, injection moulded products, and closures for major multinational soft drink and water manufacturers operating in Egypt.
In August 2018, Indorama Ventures agreed to acquire Sorepla Industrie, a French plastics recycling firm, for an undisclosed sum.