Indorama Ventures inks pact with Polyplex to buy PET resin plant in Turkey

Indorama Ventures PCL (IVL), the Thailand-based petrochemical producer, has reached a definitive agreement with Polyplex Europa Polyester Film San ve Ticaret A S, Turkey - a 100% subsidiary of Polyplex Thailand PCL (PTL) and Polyplex Asia Pte Ltd, Singapore - to fully acquire the new polyethylene terephthalate (PET) resin plant with a planned capacity of 2,52,000 tonns per annum (tpa) situated close to Istanbul in Turkey. The transaction is expected to be completed in the first quarter of 2015.
 
Following the acquisition of the 130,000 tonne Artenius Turkpet plant (now renamed Indorama Ventures Adana PET) in the second quarter of 2014, the company will have a combined capacity of 3,82,000 tonnes, making Indorama Ventures a leading domestic PET producer in Turkey and the South East Europe region.
 
Aloke Lohia, vice chairman and Group CEO, Indorama Ventures, commented, “Turkey is the rising star - the fastest emerging market of Europe and OECD in fact, with strategic access to the South East European market. Our focused growth in key markets will be instrumental in reinforcing our position as the preferred supplier to the beverage industry.”
 
He added, “Europe in general has been relatively weak since 2013 which has led to strategic M&A actions by us in 2014 to improve our EMEA cost position and serve our customers competitively from within the region. The industry consolidation, competitive currency environment and the lower raw material costs creates superior value for our customers and shareholders alike.”
 
Demand for PET is growing around 6 percent per annum. With a population of 76 million with 50 percent under the age of 30 and 10 million new middle-class households by 2020, this makes the Turkish market itself very attractive.