DuPont Teijin Films (DTF), a joint venture between DuPont and Teijin Ltd, has agreed to sell all of its equity interest in the film business joint ventures in the US, Europe and China to Thailand’s Bangkok-based Indorama Ventures, it was announced 10 Oct.
With a total film/polymer capacity of 277,000 tonnes per annum, DTF is one of the world’s premier producer of biaxially-oriented polyethylene terephthalate (BOPET) and polyethylene naphthalate (PEN) films.
In separate statements the companies confirmed the co-sale of four businesses – DuPont Teijin Films US Ltd Partnership, DuPont Teijin Films Luxemburg SA, DuPont Teijin Films UK Ltd, DuPont Teijin Films China Ltd - to Indorama Netherlands B.V.
The transaction, the amount of which was not disclosed, is expected to complete by late 2017 or early 2018, upon obtaining appropriate regulatory approvals in each country.
The acquisition comprises the manufacturing and R&D operations associated with the abovementioned four joint ventures, and the global innovation centre in the UK. Included in the deal are sales and technical capabilities, intellectual property, licenses and the Melinex and Mylar registered brands, said Indorama Ventures Ltd (IVL), the parent company of Indorama Netherlands,
The move is part of Teijin Group’s restructuring of its polyester film business, for which operations have been managed through joint ventures with DuPont.
In August last year, the company bought DuPont’s shares in JVs in Japan and Indonesia and converted them to wholly-owned subsidiaries.
Following the conversion of the two JVs, Teijin has been intensively allocating resources to upgrade the functionality of polyester films, including PEN films, in Japan and Indonesia.
Explaining the recent transaction with Indorama, Teijin said the four joint ventures with DuPont in the US, Europe and China had become “less important as resources allocation targets”.
The group specialises in film products for the specialty, industrial, packaging, automotive, advanced magnetic media, photo systems, electrical and electronics.
According to IVL, the global consumption of BOPET is expected to increase at an average rate of about 7% CAGR per annum.
IVL expects to further PET integration and value-enhancement through captive NDC, a speciality chemical used in high performance polymers and films.
The Thai company claims to be the world’s only commercial manufacturer of NDC.
“This acquisition marks a new chapter for IVL. It is the next step in creating a leading position for customer solutions in films,” said Aloke Lohia, group CEO of Indorama Ventures, commenting on the acquisition.
In North America, the DuPont Teijin film operations are part of a business that ranked No. 6 in the most recent Plastics News survey of North American film and sheet manufacturers. The regional films business is based in Hopewell, Va.
Indorama has been aggressively acquiring polyester-related assets in recent years, picking up operations in Europe, India and the United States. In 2016, it bought British Petroleum plc’s massive petrochemical complex in Decatur, Ala.
The deal apparently means that an acquisition rumored to be in discussion between two competing BOPET film producers will not take place. Earlier this year, a published report in India said that New Delhi-based Jindal Poly Films Ltd. was in advanced stages of discussions to buy the European operations of DuPont Teijin Films for $300 million.
Indorama makes polyester resin, filament yarns, fabric and fibers, but does not extrude film.
Plastics News Editor Don Loepp contributed to this report.