MOSCOW (MRC) -- Indorama Ventures Public Company Limited (IVL), a global chemical producer, has announced the completion of joint venture of IVL’s PET Company, Micro Polypet Private Limited (MicroPet), in India with Dhunseri Petrochem Ltd. (Dhunseri), as per the company's press release.
Simultaneously, IVL has acquired a 50% stake in Dhunseri’s PET Company in India, Dhunseri Petglobal Ltd. By combining the two companies as equal partners, the resulting total capacity of 700,000 tonnes per annum will make the new joint venture the second largest in India.
Mr. Aloke Lohia, Group CEO of IVL said "Today’s milestone is an important step in driving IVL’s strategic priorities forward while bringing together two leading companies with complementary strengths, brands and experiences. India is a very large country with a well-educated and booming middle class that will embrace the modern, hygienic lifestyle offered by PET packaging."
The potential for growth in the PET industry in India is significant given that per capita consumption of PET in India is currently at 0.6 KG per annum as compared to 2.6 KG per annum in China and 10.9 KG per annum in USA. The joint venture will gain from significant synergies as being the sole producer of PET Resin in Northern and Eastern India and with all its manufacturing sites being effectively integrated with third party PTA suppliers.
As MRC reported previously, in Q1 2016, BP PLC sold its petrochemical complex in Decatur, Alabama, to Indorama Ventures Public Co. Ltd., for an undisclosed sum, as part BP's plan to restructure its global petrochemicals business. The divestment was in line with BP’s global petrochemicals strategy of pursuing a competitively advantaged portfolio through world-scale, low-cost facilities that utilize BP proprietary technology, including the production of purified terephthalic acid, or PTA, a key raw material in the production of polyester.
The Decatur complex makes chemicals essential for the production of thousands of items, from plastic water bottles to flat-screen televisions. Located on 1,000 acres in Northern Alabama, the complex can produce one million tons per year of PTA, as well as paraxylene (PX), a raw material for PTA production. The site also is the world’s only commercial manufacturer of naphthalene dicarboxylate (NDC), a specialty chemical used in new-generation polyesters and resins used to make LCD flat-panel displays, ultra-thin data storage tape and other products.
Indorama Ventures is a leading producer in the polyester value chain in Thailand with strong global network and manufacturing across Asia, Europe and North America. Its products serve major 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 and polyester fibre, which are distributed across the world.
MRC