Indorama Ventures buys Cepsa's purified terephthalic acid plant in Canada

Thai firm Indorama Ventures Public Company Limited (IVL), a producer of intermediate petrochemicals, has signed an agreement to acquire 100% shareholding of the Montreal (Canada) based purified terephthalic acid (PTA) business of Cepsa Quimica SA, wholly-owned affiliate of Cepsa, and IQ Chimie Inc, a subsidiary of Investissement Quebec (jointly ‘Cepsa Chimie Montreal Sec’). The plant is the only PTA facility in Canada and one of only three PTA suppliers in North America. The acquisition, subject to usual regulatory approvals, will allow the company to expand its footprint into Canada.
 
“This will be our inaugural entry into Canada. CEPSA Chimie Montreal Sec provides us the unique opportunity to acquire assets that will consolidate our North American polyester value chain businesses for added feedstock security. The acquisition is in line with our announced strategy to expand in our core businesses, primarily in the West,” said Aloke Lohia, Group CEO of Indorama Ventures.
 
CEPSA Chimie Montreal has in this production site a capacity of approximately 6,00,000 tonnes of PTA per annum and receives piped supply of its feedstock Paraxylene from an adjacent refinery. The plant is logistically well placed to economically serve customers via rail access or via the St. Lawrence River.
 
Cepsa is an energy group fully owned by the International Petroleum Investment Company (IPIC).