Thailand's Indorama Ventures buys EO producer Old World for $795m

07 February 2012 04:44  [Source: ICIS news]

SINGAPORE (ICIS)--Indorama Ventures Ltd (IVL) will fully acquire US-based ethylene oxide (EO) producer Old World for $795m (€604m), the Thai polyester producer said on Tuesday.

It expects the transaction to be completed within the first quarter of 2012, the company said in a statement.

Old World owns and operates a 435,000 tonne/year EO production facility at Clear Lake in Texas, according to IVL.

The facility also produces 204,000 tonnes/year of purified EO and 358,000 tonnes of monoethyelene glycol (MEG), the firm said.

“[The acquisition] provides a platform for growth in new products with higher margins, established production facility, customer base, supplier network and an experienced management team,” the company said.

The Old World purchase will also provide synergies and operational efficiencies to IVL‘s existing operations of polyethylene terephthalate (PET) polymers and polyester fibers and yarns in North America, it added.

($1 = €0.76)

By: Nurluqman Suratman

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