Press Release
Indorama Ventures Augments its core PET business Creates leading position in Turkey & South East Europe PET market
Bangkok, Thailand – 08 December 2014 – Indorama Ventures PCL (“IVL”), one of the world’s foremost petrochemical producers, has reached a definitive agreement with Polyplex Europa Polyester Film San ve Ticaret. A.Ş., Turkey, a 100% subsidiary of Polyplex (Thailand) PCL (“PTL”) and Polyplex (Asia) Pte Ltd, Singapore, to fully acquire the new state-of-the-art PET resin plant with a planned capacity of 252,000 tons per year situated close to Istanbul in Turkey.
Following the acquisition of the 130,000 tonne Artenius Turkpet plant (now renamed Indorama Ventures Adana PET) in the second quarter of 2014, the company will have a combined capacity of 382,000 tons, making IVL a clear number one domestic PET producer in Turkey and the South East Europe region.
Aloke Lohia, Indorama Ventures Vice Chairman and Group CEO commented:
“Turkey is the rising star - the fastest emerging market of Europe and OECD in fact, with strategic access to the South East European market. Our focused growth in key markets will be instrumental in reinforcing our position as the preferred supplier to the beverage industry”. Lohia also stated “Europe in general has been relatively weak since 2013 which has led to strategic M&A actions by us in 2014 to improve our EMEA cost position and serve our customers competitively from within the region. The industry consolidation, competitive currency environment and the lower raw material costs creates superior value for our customers and shareholders alike.”
Demand for PET is growing around 6% per annum. With a population of 76 million with 50% under the age of 30 and 10 million new middle-class households by 2020, this makes the Turkish market itself very attractive.
The transaction is expected to be completed in the first quarter of 2015.
Following the acquisition of the 130,000 tonne Artenius Turkpet plant (now renamed Indorama Ventures Adana PET) in the second quarter of 2014, the company will have a combined capacity of 382,000 tons, making IVL a clear number one domestic PET producer in Turkey and the South East Europe region.
Aloke Lohia, Indorama Ventures Vice Chairman and Group CEO commented:
“Turkey is the rising star - the fastest emerging market of Europe and OECD in fact, with strategic access to the South East European market. Our focused growth in key markets will be instrumental in reinforcing our position as the preferred supplier to the beverage industry”. Lohia also stated “Europe in general has been relatively weak since 2013 which has led to strategic M&A actions by us in 2014 to improve our EMEA cost position and serve our customers competitively from within the region. The industry consolidation, competitive currency environment and the lower raw material costs creates superior value for our customers and shareholders alike.”
Demand for PET is growing around 6% per annum. With a population of 76 million with 50% under the age of 30 and 10 million new middle-class households by 2020, this makes the Turkish market itself very attractive.
The transaction is expected to be completed in the first quarter of 2015.