Indorama Ventures board on 5 April 2011 has approved a Brownfield expansion of PET polymers production in Europe with a capacity increase of 220,000 tons per year. This expansion, completion expected in 2013, will increase the total capacity of IVL in Europe to 1,300,000 tons per year of PET Polymers with 5 locations strategically placed to serve all countries in EU competitively. In addition, IVL has 2 PTA plants in Europe, located at Rotterdam, Netherlands and Ottana, Italy respectively. The company had earlier announced on 7 February 2011 entering into a binding agreement to acquire Trevira GMBH, the globally renowned branded Polyester company in Germany.
The decision to grow was motivated by the supply/demand dynamics within EU and the need for competitive assets to better serve the customers. Indorama has been in the forefront of investing in new, state of art, production across the world and believes that it is important to continue to renew assets to remain competitive and thereby create value to all stakeholders. The last time a new plant was built in EU was also by Indorama, back in 2006 in Lithuania, and to date this remains the largest single line in EU. IVL also identified the benefits of a “brownfield” expansion at this time as being more cost effective solution than developing a “new greenfield” site.
Aloke Lohia, Group CEO of Indorama Ventures expressed gratitude to the group’s management for their foresight in identifying opportunities in the fast-growing consumer led markets for PET (polyethylene terephthalate). He comments:
“Europe is going through a challenging period and investments at this stage are not without risks; however I believe that Indorama Ventures can only succeed in our mission to be the partner of choice to our customers and suppliers due to a business model employed that is both competitive as well as sustainable. Our latest Brownfield expansion of 220,000 tons is going to be at a highly cost competitive capex as well as operate at the lowest operational cost by being able to leverage on existing infrastructure and close proximity to key raw materials.”
“Polyester fibres and yarns, PET polymers and PTA are growing at unprecedented levels and as a consequence, I am very encouraged with the synergy we experience now with the recently acquired business’s in the US, Mexico, China, Indonesia and Poland. I am excited that the IVL business stays on track to maintain its growth momentum,” said Mr. Lohia.
“Ensuring value accretive investments are the hallmark of our company and we intend each site to be a showcase of our ability to serve competitive markets while creating value,” he added.
Source: Indorama Website