Thailand's Indorama Ventures Public Company Limited has signed agreements with Korea's SK Chemicals Company Limited to acquire the entire issued capital of SK Eurochem Sp. z o.o., in Poland and PT SK Keris together with its subsidiary PT SK Fiber in Indonesia.
The acquisitions will consolidate Indorama Ventures (IVL) position in the two important emerging markets of East Europe and Southeast Asia with Polyethylene Terephthalate resin (PET) and Polyester Fibres and Yarns businesses. SK Eurochem is a 140,000 tons per annum PET manufacturing facility while SK Keris is a 160,000 tons per annum PET and Polyester Filament Yarn manufacturing facility and SK Fiber Indonesia is a Polyester Filament Yarn manufacturing facility with a capacity of 36,000 tons per annum.
Mr. Aloke Lohia, Group CEO of Indorama Ventures Pcl, said, "The business and markets of these SK Chemicals' assets are in new and attractive geographic regions that Indorama has been keen to develop. These acquisitions will allow the Company to build upon its objective of expanding its global platform by entering emerging markets with high long-term potential for demand. This will also strengthen our value proposition to our regional and global customers and stakeholders alike, while further reinforcing our ongoing focus on the Polyester value chain."
Indorama Ventures has built up a strong brand with cost leadership position in the Polyester value chain. The acquisition in Poland is virtually integrated with a third party supplier of Purified Terephthalic Acid (PTA), further consolidating the Company's low cost structure.
The Indonesian assets very much mirror the earlier announced acquisition of parts of Invista in USA and Mexico, in that they produce differentiated polymers and fibres that complement Indorama Ventures portfolio of speciality products. Indorama will now be amongst the largest producer of polymer for films to serve markets in Asia, Europe, USA and Latin-America.
"As IVL expands into the Polyester value chain and enhances its product capabilities, we are creating appeal to new customers with our differentiated portfolio of attractive and value-added products. These new acquisitions in Indonesia along with previously announced plans in USA and Mexico will allow us to offer a broader range of specialist polymers and fibres to serve customers in Asia and Americas," Lohia added.
The Royal Bank of Scotland acted as the sole financial advisor to Indorama Ventures.
About Indorama Ventures, Thailand
Indorama Ventures Public Company Limited, listed in Thailand (Bloomberg ticker IVL.TB) is a leading integrated producer in the polyester value chain with strong global network and manufacturing across Asia, Europe and North America. Its products serve major branded players in diversified end use markets, including food, beverages, personal and home care, health care, automotives, textile, and industrial. The company's main products are PTA, PET, Polymers and Polyester fibres, which are manufactured and distributed across the world. IVL has approximately 3,500 employees worldwide and annual consolidated revenue of $2.3 billion in 2009.
Indorama acquired SK Eurochem