Other Release
IVL Closes Deal for Old World MEG business to add value to integration strategy
Bangkok, Thailand - 4 April 2012- Indorama Ventures Public Company Limited (IVL), the world's leading vertically integrated Polyester Value Chain producer, has closed the deal to acquire Old World Industries I, Ltd., and Old World Transportation Ltd. ("Old World"), a U.S.-based Ethylene Oxide ("EO") and Ethylene Glycol ("EG") producer for US$ 795 million. The deal was first announced in February 2012.
Old World, the largest single EO/EG production facility in the U.S. with Crude EO capacity of 435,000 tons per annum, is located in Clear Lake, Texas, near Houston. The area is at the heart of America's petrochemical industry and is networked by pipelines delivering feedstock. Old World will continue to serve the U.S. purified EO merchant market in addition to its glycol customer base.
IVL, the worlds largest Polyester/PET producer is integrated into PTA in Europe and Asia and virtually integrated in the USA via co-location with a PTA supplier in Alabama.
Mr. Aloke Lohia, founder and Group CEO of Indorama Ventures said, "I am particularly pleased to conclude this acquisition as I believe it is a game-changer for the company. We are now integrated into both our major feedstocks and expect to reap the benefit of the high demand for this product. To enter an industry that is forecast to enter an upcycle in the near future is good timing for us and I believe this is a business line we can build over time and remain as the most competitive global player best placed to both serve the customer needs and our shareholders interest."
Old World Industries, LLC, from whom Indorama Ventures purchased the EO/EG business, will continue to own and operate its Consumer Products Group business. Old World Industries CPG markets PEAK branded antifreeze, motor oil and wiper blades, as well as, Final Charge heavy duty coolant and BlueDEF diesel emissions fluid in North America and over 30 countries worldwide. Indorama Ventures will continue to supply Ethylene Glycol to the Consumer Products Group for its coolant business under a long term contract that was part of the purchase agreement.
Old World, the largest single EO/EG production facility in the U.S. with Crude EO capacity of 435,000 tons per annum, is located in Clear Lake, Texas, near Houston. The area is at the heart of America's petrochemical industry and is networked by pipelines delivering feedstock. Old World will continue to serve the U.S. purified EO merchant market in addition to its glycol customer base.
IVL, the worlds largest Polyester/PET producer is integrated into PTA in Europe and Asia and virtually integrated in the USA via co-location with a PTA supplier in Alabama.
Mr. Aloke Lohia, founder and Group CEO of Indorama Ventures said, "I am particularly pleased to conclude this acquisition as I believe it is a game-changer for the company. We are now integrated into both our major feedstocks and expect to reap the benefit of the high demand for this product. To enter an industry that is forecast to enter an upcycle in the near future is good timing for us and I believe this is a business line we can build over time and remain as the most competitive global player best placed to both serve the customer needs and our shareholders interest."
Old World Industries, LLC, from whom Indorama Ventures purchased the EO/EG business, will continue to own and operate its Consumer Products Group business. Old World Industries CPG markets PEAK branded antifreeze, motor oil and wiper blades, as well as, Final Charge heavy duty coolant and BlueDEF diesel emissions fluid in North America and over 30 countries worldwide. Indorama Ventures will continue to supply Ethylene Glycol to the Consumer Products Group for its coolant business under a long term contract that was part of the purchase agreement.