HomeMedia CenterNewsNews Release
News Release
Indorama Ventures Acquires DuPont Teijin Films Strengthens IVL’s High Value-added Product Leadership
Oct 10, 2017
  • New HVA segment for IVL with attractive growth platform
  • World-class technology and innovation platform and a leading position in diverse industry segments
  • Value creation and synergy potential
  • Enables IVL to offer an even more compelling value proposition for customers
  • Delivers immediate value accretion
 
Bangkok, Thailand – 10 October 2017 - Indorama Ventures Public Company Limited (IVL), a global chemical producer, has announced that it has entered into an agreement to acquire DuPont Teijin Films (DTF), a leading global producer of Biaxially-oriented Polyethylene Terephthalate (BOPET) and Polyethylene Naphthalate (PEN) films with total film/polymer capacity of 277,000 tonnes per annum. The DTF acquisition includes 8 production assets in the US, Europe and China, with a global innovation center in the UK. The transaction is expected to be completed during late 2017 or early 2018, subject to the usual regulatory approvals.
 
DuPont Teijin Films (DTF), a joint venture between DuPont and Teijin Limited, is the world’s premier producer of BOPET and PEN polyester high value-added film with unique functionalities. The group specializes in film products for the specialty, industrial, packaging, automotive, advanced magnetic media, photo systems, electrical and electronics markets and many more products that are essential in modern life. DTF is recognized for their market leadership and product innovation, and is constantly inventing and developing new uses for their products.
 
Included in the transaction are manufacturing and R&D operations associated with four joint ventures in the United States, United Kingdom, Luxembourg, and Hong Kong (DTFC), which includes two JVs in China (51%), as well as sales and technical capabilities, intellectual property, licenses and the Melinex® and Mylar® registered brands.
 
The global BOPET film industry has expanded rapidly and there are increasing applications and end-uses. The global consumption of BOPET is expected to increase at an average rate of about 7% CAGR per annum making the acquisition attractive. Critical success factors are customer intimacy, product innovation and R&D capabilities, which align well with DTF’s core competencies. Through the acquisition, IVL will further enhance PET integration and value-enhancement through captive NDC, a specialty chemical used in high performance polymers and films. IVL is the world’s only commercial manufacturer of NDC.
 
Commenting on the acquisition, Mr. Aloke Lohia, Group CEO of Indorama Ventures, said, “This acquisition marks a new chapter for IVL. It is the next step in creating a leading position for customer solutions in films. DTF provides prudent growth in an industry related to our core businesses and is a strong foundation for future growth. DTF has a strong history of R&D with over 700 patents, which makes it a strategic fit with our own innovation capabilities.”
 
“We believe in diversity as a core value of the Company and we look forward to welcoming DTF’s strong management team and talented employees into our family.”
 
Allen & Overy and Lowenstein Sandler LLP are serving as legal advisors to Indorama Ventures.  Goldman Sachs & Co. LLC is serving as joint financial advisor to DuPont and Teijin.  Eckert Seamans Cherin & Mellott LLC is serving as legal advisor to DuPont.  Terralink Advisors Inc. is serving as financial advisor, and Morrison & Foerster LLP is serving as legal advisor to Teijin. 
 
More information is available at www.indoramaventures.com
 
 
About DowDuPont Specialty Products Division
DowDuPont Specialty Products, a division of DowDuPont (NYSE: DWDP), is a global innovation leader with technology-based materials, ingredients and solutions that help transform industries and everyday life. Our employees apply diverse science and expertise to help customers advance their best ideas and deliver essential innovations in key markets including electronics, transportation, building and construction, health and wellness, food and worker safety. DowDuPont intends to separate the Specialty Products division into an independent, publicly traded company. More information can be found www.dow-dupont.com.
 
About the Teijin Group
Teijin (TSE: 3401) is a technology-driven global group offering advanced solutions in the areas of environmental value; safety, security and disaster mitigation; and demographic change and increased health consciousness. Its main fields of operation are high-performance fibers such as aramid, carbon fibers & composites, healthcare, films, resin & plastic processing, polyester fibers, products converting and IT. The group has some 170 companies and around 19,000 employees spread out over 20 countries worldwide. It posted consolidated sales of JPY 741.3 billion (USD 6.5 billion) and total assets of JPY 964.1 billion (USD 8.5 billion) in the fiscal year ending March 31, 2017.
Please visit www.teijin.com
 
About Indorama Ventures       
Indorama Ventures Public Company Limited, a DJSI member, listed in Thailand (Bloomberg ticker IVL.TB), is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia, Europe and North America. The company’s portfolio comprises Necessities and High Value-Added (HVA) categories of Polymers, Fibers, and Packaging, selectively integrated with self-manufactured Ethylene Oxide/Glycols and PTA where economical. IVL products serve major FMCG and Automotive sectors, i.e. Beverages, Hygiene, Personal Care, Tire and Safety segments. IVL has approx. 15,000 employees worldwide and consolidated revenue of US$ 7.2 billion in 2016.
 
IVL is headquartered in Bangkok, Thailand with global operating sites in
 
EMEA:
 
The Netherlands, Germany, Ireland, France, UK, Italy, Denmark, Lithuania, Poland, Czech Republic, Luxembourg, Spain, Turkey, Nigeria, Ghana
 
North America:
 
USA, Mexico, Canada
 
Asia: Thailand, Indonesia, China, India, the Philippines, Myanmar
 
Contacts
For investors:
Richard Jones
Tel: +662.661.6661 ext. 680
richard.j@indorama.net
 
For media:
Naweensuda Krabuanrat
Tel: +662.661.6661 ext. 247
naweensuda.k@indorama.net

Note:
This document contains “forward-looking statements” about the financial condition and results of operations of Indorama Ventures Public Company Limited (the “Company”), which are based on management’s current beliefs, assumptions, expectations and projections about future economic performance and events, considering the information currently available to the management.  Any statements preceded by, followed by or that include the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “plans”,   “could”,  “should, “predicts”, “projects”, “estimates”, “foresees” or similar expressions or the negative thereof, identify or signal the presence of forward-looking statements as well as predictions, projections and forecasts of the economy or economic trends of the markets, which are not necessarily indicative of the future or likely performance of the Company.