The acquisition will help IVL to expand its integrated portfolio of PET products and boost its market presence for major multinational customers throughout the region
Indorama Ventures has purchased PET packaging firm in Vietnam for 3,096.12 million Baht. (Credit: Hans from Pixabay)
Thailand-based chemical company Indorama Ventures Public Company Limited (IVL) has closed the acquisition of Ngoc Nghia Industry – Service – Trading Joint Stock Company (NN).
IVL bought 97.8% of Ngoc Nghia for a sum of about THB3.09bn ($91m).
The acquisition will help IVL to expand its integrated portfolio of PET products and boost its market presence for major multinational customers throughout the region.
Ngoc Nghia is specialised in PET, preforms, and closures, with long-term relationships with key worldwide and Vietnamese beverage and non-beverage brands.
It has four manufacturing sites in Vietnam’s north and south, with a total production capacity of 5.5 billion units of PET preforms, bottles, and closures, and a total conversion capacity of 76,000 tonnes of PET per year.
IVL CEO D K Agarwal said: “We are glad to embark on our journey in Vietnam, which is one of the high-growth markets in the region.
“This acquisition is complementary to our long-term strategy of extending our global footprint and resilient business platform.
“With long-standing experience in the integrated PET business, IVL will bring more competitive advantages to NN.
“The development will also enable us to better serve our large regional customers, many of which are major household brands who depend on a reliable, consistent supply of PET packaging products across the region.”
IVL aims to sustainably serve clients in Vietnam and IVL’s main PET packaging customers throughout the region, including global household beverage brands.
IVL packaging vertical business head Sunil Marwah said: “NN is a market leader in PET, preforms and closures in Vietnam, where we can increase our focus on customers in the ASEAN regional champion market, offering a full range of PET packaging solutions with enhanced operational excellence.
“This includes the potential to expand our world-leading recycled PET (rPET) business into Vietnam. As a family business, it is a very good fit for IVL, and adds a new domestic market to our growing business.”