Our objective is to strengthen our position as a market leader in the polyester value chain segment of intermediate petrochemicals in terms of scale, integration and differentiation as well as profitability and return on investment, supported by a focus on delivering long-term, superior shareholder value. Indorama Ventures is a major global intermediate petrochemicals producer and one of the largest vertically integrated polyester value chain producers in the world, serving world-class customers in diversified end-use markets including food, beverages, personal and home care, health care, automotive, textile and industrial. With more than 14,000 employees, 66 operating sites in 21 countries across 4 continents, we supply our products to customers in nearly every part of the world. It is estimated that in 2030, the world population will reach 8.4 billion people. This population growth surge will present global challenges, but we see these as opportunities for demand across all our markets. With the fast-paced evolution of technologies, innovation will also play a key role in chemical
industry to create market that is sufficiently sustainable to balance the environment, resources, climate, food and nutrition, and quality of life. As the fastest growing polymer in the world at a rate of 6.5% annually, polyester is the future.
Our strategy has been designed to help us continue achieving our objectives as follows:
Focused Growth and Investment
- Focused Growth and Investment;
- Integrated Business Model;
- Geographical Diversification;
- Product Diversification;
- Sustainability; and
- Operational Excellence.
Our growth and investment strategy is to build and enhance our existing market leadership position in each of the regions that we operate, as well as expand our geographical presence through organic growth and value-enhancing acquisitions in our industry. We have an established a track record of implementing this strategy through Greenfield investments, brownfield expansions as well as via attractive acquisitions. Acquisitions are a main contributing factor for achieving our strategic targets. Indorama Ventures has strategic and financial acquisition criteria that are used to evaluate potential acquisition targets. We have strong track record of acquiring businesses and integrating them successfully into our organization.
Vertical Integration Business Model
We expect vertical integration, either through asset ownership, co-located sites with owned assets or virtual integration through co-located sites with key raw material suppliers, to enhance our operational and logistical efficiency, cost competitiveness and raw material security. Integration through owned assets also enhances our ability to insulate ourselves from sector cyclicality and improve the quality, visibility, and predictability of earnings. Moving forward, our strategy will focus on going further into our Ethylene and Paraxylene raw materials, in line with our downstream polyester and other feedstock (PTA and MEG) capacities.
Diversifying our customer mix, both geographically and through end-use applications (for some business segments), is an important aspect for our continued success in the polyester value chain. We plan to continue to enhance our marketing efforts to geographically diversify our customer base for the product lines.
As a leading polyester value chain player, we intend to focus on the development of our research and development capabilities, either through our own facilities or through the establishment of key
relationships with other industry players. We work carefully alongside our customers to provide them with innovative ideas, expertise and support solutions for their specific requirement. Through this differentiation goal, we have significantly expanded our non-commodity or high value added (HVA) portfolio.
We believe that increase in our ability to use recycled materials and integrate such recycled materials within our standard processes will allow us to cater to changing customer objectives and proactively address environmental issues. In addition to recycling, we continue to promote our sustainability initiatives through the seven pillars of sustainability namely Waste Reduction, Reducing Resources, Renewable Energy, Recycling, Employee Development, Stakeholder Engagement and Local Community Development.
Maintaining a low cost philosophy by continued focus on production cost efficiency, scale and technology efficiency, raw material efficiency and investment efficiency will help us maintain our industry cost position in the future. In our volume-driven commodity businesses, such as our PET, PTA and some commodity polyester fiber businesses, cost competitiveness is a key driver which differentiates industry leaders from others. We emphasize the importance of operational excellence to bring synergies and facilitate best practice knowledge transfer across the global IVL footprint. Key focus areas include benchmarking conversion costs, optimizing the workforce, wastage reduction and recovery, and environment health and safety issues.
We are committed to maintaining a continued emphasis on financial discipline and prudent investment decisions. We evaluate each potential investment on the basis of stand-alone profitability and efficiency, in addition to its potential synergistic contribution within the overall organization. We strive to maintain an efficient capital structure as we grow to provide us sufficient flexibility in our operations and sufficient liquidity in our cash flow position. We intend to continue to finance projects on a standalone basis and to maintain debt levels at a level where cash flows from individual operations are sufficient to cover our debt service requirements even during industrial downturns.