Indorama Ventures acquires Turkish PET resin maker Artenius TurkPET
This is the second acquisition of the Thai firm in Turkey this year. In April 2014, it had acquired 51% of Istanbul-listed Polyester Sanayi A S
BS B2B Bureau B2B Connect | Bangkok, Thailand
Aloke Lohia, Group CEO, Indorama, said, “Our thrust continues to be to shape the businesses of IVL to grow profitably and to deliver attractive returns to our shareholders across cycles. Indorama leadership in the PET value chain will provide significant synergies to TurkPET in order to deliver above average returns. Turkey and its encompassing region is a fast-growing market and our investments in Turkey are part of a well-defined strategy to bolster our global leadership and competitive advantage. We expect to make further follow-on investments in this thriving economy of 76 million consumers to replicate what we have built in Thailand as we see a similar opportunity to fully leverage on all our products portfolios.”
Turkey is an attractive market with a deeply urbanised economy enjoying high PET demand growth. Its Eurasian location provides ease of access to Central Asia, Middle East, North Africa and Southern Europe via excellent land and sea infrastructure.
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The acquisition of Artenius Turkpet comes on the heels of an announcement on April 9, 2014 that Indorama Ventures will acquire 51% of Istanbul-listed Polyester Sanayi A.S (SASA). Both SASA and Artenius Turkpet are situated adjacent to each other and this will lend further synergies to the deals.
“Indorama Ventures is looking to Turkey as a key market for serving Europe and the near Asia-Middle East markets. Our strategy of geographic diversity combined with vertical integration and horizontal expansion into high value-added (HVA) goods is epitomised by our Turkish entry as we can now serve our globally-branded fast-moving consumer goods customers with an integrated polymer commodity and fibre HVA portfolio in a relatively low-cost environment that is ideally situated to serve developing and mature markets on its doorstep,” Lohia concluded.
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First Published: Jun 03 2014 | 4:50 PM IST