Thailand-based Indorama Ventures has agreed to acquire M&G Polimeros Brazil, a producer and marketer of PET resins for packaging applications, for an undisclosed sum.
The acquisition expands Indorama's global footprint with presence in South America, which the company says is an important emerging market with domestic demand for PET increasing at about 5%.
M&G Polimeros Brazil in Ipojuca Brazil is claimed to be is the largest PET facility in country, with capacity of 550,000 tonnes per year.
The facility will benefit from virtual integration with a manufacturer of purified terephthalic Acid (PTA), an important feedstock to PET.
Subject to regulatory approvals, the deal is expected to be completed in the second quarter of this year.
Indorama Ventures Group CEO Aloke Lohia said: “We are pleased to have reached this agreement, and taken significant action to strengthen our capability for profitable growth. Indorama Ventures now has unrivalled scale and global reach, being present in five continents with a uniquely balanced and integrated business model.
“This is an exciting move for us, reflecting our continued commitment to support our customers using our global scale and local presence. We look forward to capitalizing on this new market and opportunities for cross-selling to immediately deliver greater value to existing and new customers, while delivering profitable growth and enhanced shareholder value.”
In October 2017, Indorama Ventures agreed to acquire DuPont Teijin Films (DTF), a joint venture of DuPont and Teijin.
DTF’s film products are used in various applications, including specialty, packaging, industrial, automotive, advanced magnetic media, photo systems, electrical and electronics markets.
DTF is engaged in the production of biaxially-oriented Polyethylene Terephthalate (BOPET) and Polyethylene Naphthalate (PEN) films
Based in Bangkok, Indorama Ventures produces petrochemical products and reported consolidated revenue of $8.4bn in the last year. The company employs about 15,000 people.
Indorama’s products are used in various sectors, including beverages, hygiene, personal care, tire and safety segments.
Image: Indorama Ventures to acquire M&G Polimeros Brazil. Photo: courtesy of adamr / FreeDigitalPhotos.net.