Thai chemicals manufacturer Indorama Ventures (IVL), has entered into an agreement to acquire M&G Polimeros Brazil SA in Ipojuca Brazil for an undisclosed amount.
In a 16 March statement, IVL said the plant is “the largest PET facility in Brazil, with capacity of 550,000 tonnes/annum.”
According to IVL, the plant is strategically located and benefits from virtual integration with a manufacturer of purified terephthalic acid (PTA), a key feedstock to PET.
The transaction is expected to be completed in second quarter 2018, subject to regulatory approvals.
The acquisition in Brazil follows a series of takeovers and investment in recent months by IVL, which claims to be the world's number 1 PET player.
The company's growth strategy focuses on expanding its global footprint in key markets with high growth potential.
South America, said IVL, is an important emerging market with domestic demand for PET growing at around 5%.
“Today's per capita consumption of PET is comparatively low at 2.8 kg and has great potential for growth,” the company added.
In its 2017 financial results, IVL recorded a $1bn earnings supported by significant improvement in the PET and feedstocks business environment.
Commenting on the acquisition, Aloke Lohia, group CEO of Indorama Ventures, said the company “now has unrivalled scale and global reach, being present in five continents.”
“We look forward to capitalising 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,” he added.