IVL (Indorama Ventures) aims to boost production capacity to 10m tons in 2014
- IVL remains confident that polyester business is likely to keep growing at a brisk pace as it is a necessary and environmentally friendly product.
- SBA-CCI forecasts that PET and polyester demand will grow at a CAGR of 6% and 8.5% in 2009-13 respectively. In Asia, demand for PET and polyester is however expected to grow at a stronger pace of 12% and 11.6% respectively.
- IVL would spend a total of US$3.8b to boost the group’s annual production capacity to 10m tons in 2014 from total capacity of 3.2m tons (PET + PTA + fiber) at end-2010. Capacity expansion plan will be financed by debts, operating cash flow and proceeds from the exercise of IVL-T1. Its net D/E ratio will remain at 1x without capital raise.
- The acquisitions in 2H10 have already been consolidated with additional capacity of 1.4m tons, which is expected to start generating revenue for IVL in 2Q11.
- Strong earnings momentum is likely to continue in 1Q11 driven by additional volumes from the recently acquired plants in 2010 and still-high margin.
(Indorama Ventures analyst meeting)