Other Release
IVL to Acquire PET Business in Indonesia Integration with PTA business Polyprima to lower costs
Bangkok, Thailand - 6 March 2012 - Indorama Ventures Public Company Limited, the world's largest Polyester Value Chain Company, has agreed to acquire 100% of the PET assets of PT Polypet Karyapersada in Indonesia. The assets, which are able to produce up to 100,800 metric tons per annum of PET (Polyethylene Terephthalate) are situated adjacent to the PTA assets of PT Indorama Petrochemicals (formerly known as PT Polyprima Karyesreska) at Cilegon, West Java, which Indorama Ventures acquired under a joint venture in 2011. Approximately half of Polypet's output today is for domestic consumption.
Mr. Aloke Lohia, Group CEO of Indorama Ventures, said, "This acquisition will further assist us to consolidate our position in the Indonesian market, while the co-location with Polyprima fits in with our integration strategy. The synergies created by integrating the two plants will lower costs through shared services and logistic cost saving and will be accretive to the bottom line.
"Indonesia is a fast-growing market for our customers with an attractive potential for future growth. Low energy and other costs make this a very attractive place for long term investment," said Mr. Lohia.
Mr. Aloke Lohia, Group CEO of Indorama Ventures, said, "This acquisition will further assist us to consolidate our position in the Indonesian market, while the co-location with Polyprima fits in with our integration strategy. The synergies created by integrating the two plants will lower costs through shared services and logistic cost saving and will be accretive to the bottom line.
"Indonesia is a fast-growing market for our customers with an attractive potential for future growth. Low energy and other costs make this a very attractive place for long term investment," said Mr. Lohia.