Indorama Ventures buys Invista's PET assets in the US, Mexico

12 November 2010 10:10  [Source: ICIS news]

SINGAPORE (ICIS)--Thailand’s Indorama Ventures said on Friday it signed an agreement with US-based polyethylene terephthalate (PET) producer Invista to acquire two of the latter’s polyester resins and polyester staple assets in the US and Mexico.

Indorama Ventures would be acquiring Invista’s production site at Spartanburg, in South Carolina, which has an overall capacity of 470,000 tonnes/year, as well as a similar facility in Queretaro, Mexico, which produces 535,000 tonnes/year of various products, the company said in a statement.

Both sites produce PET, specialty polymers, fibres and film with end-uses that include bottles for carbonated soft drinks, water, juice, food and other custom-container applications, and fibres and specialty polymers for a variety of applications, it said.

The transaction was expected to close during the first quarter of 2011, the statement said.

“This acquisition will allow the company to build upon its expanding global platform, making the company the largest PET producer in the world and at the same time complement the strategy to increase its footprint into new higher growth markets of Central and Latin America,” said Indorama.

The total acquisition value for both sites was estimated to be around $229m (€167m), said Naphat Chantaraserekul, a Bangkok-based analyst at brokerage house DBS Vickers Securities.

Both sites are believed to be running at 70% of capacity, the analyst added.

($1 = €0.73)

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By: Nurluqman Suratman

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