Indorama Ventures Public Co. Ltd (IVL) has completed the previously announced acquisition of PET manufacturer Invista Resins & Fibers GmbH from its parent company Invista.
Based in Gersthofen, Germany, the PET business has an overall capacity of 282 kilotonnes per annum (ktpa) and employs 140.
The acquisition complements IVL's €308m takeover of Invista's PET polymer and resin manufacturing facilities in Spartanburg, South Carolina, and Querétaro, Mexico, in 2011.
Through the acquisition, IVL will own the intellectual property rights of Polyshield PET and Oxyclear Barrier PET, Invista's barrier technology, in all markets globally. The Thai chemicals company already holds the licenses in the Americas.
The two brands, said Indorama in a 20 Dec announcement last year, are “well-anchored in oxygen barrier packaging i.e. ketchup.”
The German business has been described by Indorama as a “strong strategic fit” with IVL and its acquisition is aligned with the Thai company's strategy to grow in both the packaging and in industrial fibres segments.
PET packaging with an oxygen barrier is mainly used by the food and beverage industry to protect oxygen-sensitive products, such as juice, wine, beer, dairy as well as ketchup, sauces and other condiments throughout their entire shelf life.
According to IVL, demand for barrier resins is expected to grow at a strong pace, driven by the improved shelf life of packaged food products, increasing health and hygiene concerns and the emergence of new recyclable PET applications in replacement of traditional materials such as glass and aluminium cans.
“This is a very exciting development for IVL. With our strong foundation in the PET market and IVL's geographic reach, we see vast opportunities to grow the Polyshield PET and Oxyclear Barrier PET brands to their full potential,” said Aloke Lohia, Group CEO of Indorama Ventures upon announcing the acquisition in Dec.
Already a major player in the US, one of the largest barrier resin markets in the world, IVL expects this latest acquisition to create opportunities for the company's further growth across the globe.
The financial details of the transaction have not been disclosed.
Invista's high-performance barrier PET technologies use highly active scavenger chemistry that contains no polyamide or nitrogen, giving the polymer high levels of clarity.