MOSCOW (MRC) --Indorama Ventures Public Company Limited (IVL), a global chemical company, announces its 2020-2023 Strategy at its Capital Markets Day, as per the company's press release.
Summary: IVL’s time-tested approach has generated strong returns for stakeholders through both the peaks and valleys of the chemical cycle.
We have a well articulated 2023 strategy focusing on 5 pillars: Cost Transformation via Olympus, Asset Full Potential, Adjacency Growth, Recycling Leadership, and our People.
In combined PET, we aim to strengthen our cost advantage while also driving the circular economy for PET by building a leading recycling business.
In Fibers, we are focused on operation efficiency, asset integration, and innovation to meet customer’s evolving needs, resulting in a business that delivers double-digit ROCE.
Our aggregated business continue to generate heathy operating cash flow, we continue to focus on working capital while simultaneously deleveraging the balance sheet.
We continue to invest in our people, put in place organization and governance structures and HR processes to ensure we have a healthy IVL for the future.
Mr. Aloke Lohia, Group CEO of Indorama Ventures, said, "Going forward, IVL will continue to pursue our strategic themes, with the ambition of achieving double-digit ROCE, strong cash flows across the cycle and above average returns to shareholders. Historically, we have always remained strong through the peaks and troughs of the chemical cycle and expect to continue to outperform thanks to our highly experienced and professional management team."
This strategy was presented and agreed at IVL’s Global Management Conference (GMC), which includes over 200 members of IVL’s global leadership team, and was held January 30 – 31 in Bangkok, Thailand.
As MRC reported earlier, IVL commenced the commercial operations of its olefins gas cracker at Indorama Ventures Olefins (IVOL) plant in Westlake, Louisiana, the USA on 31 January 2020. The site has an ethylene production capacity of 440 kilotons per annum (KTA) and is highly integrated with the US Gulf Coast ethylene pipeline infrastructure for efficient distribution. This cracker is strategically positioned in the US gulf coast and allows to leverage shale gas availability. The facility is strategically positioned for long-term captive ethylene supplies to Indorama Ventures Oxide and Glycols (IVOG) plant in Clear Lake, Texas and the recently acquired integrated EO and PO assets in Port Neches, Texas.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).
Indorama Ventures Public Company Limited, listed in Thailand, is one of the world's leading petrochemicals producers, a global manufacturing footprint with 59 sites in 20 countries across Africa, Asia, Europe and North America. The company's portfolio is comprises necessities and high value-added (HVA) categories of polymers, fibers, and packaging. Indorama Ventures has approx. 24,000 employees worldwide and consolidated revenue of USD10.7 billion in 2018. The company is listed in the Dow Jones Emerging Markets and World Sustainability Indices (DJSI).