Petrochemical producer Indorama Ventures has announced that it has entered into an agreement to acquire M&G Polimeros Brazil S.A, the largest PET facility in Brazil, with a capacity of 550,000 tonnes/ annum. Located in Ipojuca, M&G produces PET resins for packaging applications. The transaction is expected to be completed in second quarter 2018, subject to regulatory approvals. The acquisition will significantly advance IVL’s strategy in its necessities business, where the company aims to deepen its global footprint and build scale in key markets.
The plant is strategically located and benefits from virtual integration with a manufacturer of Purified Terephthalic Acid (PTA), a key feedstock to PET. According to Aloke Lohia, Group CEO of Indorama Ventures, “We are pleased to have reached this agreement, and taken significant action to strengthen our capability for profitable growth. Indorama Ventures now has unrivalled scale and global reach, being present in five continents with a uniquely balanced and integrated business model.”
According to the company, the acquisition in Brazil is in line with the company’s strategy to further extend its market position, and expand its global footprint in key markets with high growth potential. This strategic position allows Indorama Ventures to deliver products to key customers in Brazil and elsewhere in a cost-effective and efficient manner. The company expects immediate incremental revenues and cost synergies, driven by a substantial volume increase and potential value add through backward integration.