NN delivers PET packaging products to major multinational and Vietnamese brands in the beverage and non-beverage industries
Thailand-based Indorama Ventures Public Company (IVL) has proposed the acquisition of Vietnamese polyethylene terephthalate (PET) converter Ngoc Nghia Industry – Service – Trading Joint Stock Company (NN).
IVL is currently engaged in the process of purchasing shares in NN, which delivers PET packaging products to major multinational and Vietnamese brands in the beverage and non-beverage industries.
Established in 1993, NN has expertise in bottle blow-moulding, injection moulding, and cap compression moulding processes.
With four manufacturing sites in the North and South of Vietnam, NN has a total production capacity of around 5.5 billion units of PET preforms, bottles and closures.
The company’s total production capacity is equivalent to a PET conversion of 76,000 tonnes per annum.
Indorama Ventures combined PET, IOD and fibres business CEO Dr D K Agarwal said: “This investment opportunity is in line with IVL’s business strategy of expanding our footprint in rising economies like Vietnam. The country is positioned to be the ASEAN production hub for the Asia-Pacific region.
“Moreover, Vietnam’s PET packaging market is expected to grow continuously due to strong growth in consumption and improving living standards.
“The proposed acquisition would foster sustainable growth in our largest business segment, Combined PET, which has been growing constantly to serve increasing demands globally.”
The proposed acquisition is expected to help IVL to bolster its market presence in the packaging business in high growth markets of the Asia-Pacific region.
IVL stated that it has to make a tender offer for all of NN’s shares through its affiliate Indorama Netherlands.
The deal is expected to be completed by the first half of this year.
In November 2020, the Asian Development Bank (ADB) approved a $100m financing package for IVL to help reduce the environmental impact of plastic and promote a circular economy.