Other Release
IVL to Build PTA-PET-PSF Plant in India Expects to serve Indian and Export markets
Bangkok, Thailand - 25 January 2012 - Indorama Ventures Public Company Limited (IVL), Thailand's largest Polyester producer, announced its plan during the official visit of Thailand's Prime Minister Yingluck Shinawatra to India on 25 January, to construct a world-class, state-of-the-art and integrated facility in India containing PTA (Purified Terephthalic Acid), PET (Polyethylene Terephthalate) and PSF (Polyester Staple Fiber) plants fully-integrated with a third party Paraxylene producer. A Memorandum of Understanding was signed with Indorama Synthetics (India) Limited to enter into a joint venture that would construct and utilize the offtake of the plants.
Mr. Aloke Lohia, Group CEO and founder of Indorama Ventures said, "India today is a fast-growing market that is demanding attention from the world's fast moving consumer goods companies, who are our customers. It is imperative that we are there to serve these customers and the emerging local producers who will be consuming more and more PET and PSF over the next decade. We are looking at the long term double digit growth in demand for such products and feel this is the right time to move into the market. "
PET is commonly used in food and drinks packaging and is familiar to all as the bottles from which people consumer water and soft drinks. PSF is a polyester alternative to natural fibers and allows the manufacturers of clothing and other soft products to produce low-cost items ideally suited to a large and growing population. PTA is the major raw material used in the production of both PET and PSF. Indorama Ventures plans to backward integrate into the Paraxylene facility of a third party in order to ensure a captive supply of its essential raw material while providing low cost access.
The large-scale project is expected to cost around US$700 million. Details of the capacity and location are expected to be made public once formal negotiations have been completed.
Mr. Aloke Lohia, Group CEO and founder of Indorama Ventures said, "India today is a fast-growing market that is demanding attention from the world's fast moving consumer goods companies, who are our customers. It is imperative that we are there to serve these customers and the emerging local producers who will be consuming more and more PET and PSF over the next decade. We are looking at the long term double digit growth in demand for such products and feel this is the right time to move into the market. "
PET is commonly used in food and drinks packaging and is familiar to all as the bottles from which people consumer water and soft drinks. PSF is a polyester alternative to natural fibers and allows the manufacturers of clothing and other soft products to produce low-cost items ideally suited to a large and growing population. PTA is the major raw material used in the production of both PET and PSF. Indorama Ventures plans to backward integrate into the Paraxylene facility of a third party in order to ensure a captive supply of its essential raw material while providing low cost access.
The large-scale project is expected to cost around US$700 million. Details of the capacity and location are expected to be made public once formal negotiations have been completed.