MOSCOW (MRC) -- Indorama Ventures Public Company Limited (IVL), a global sustainable chemical company, announces that it is in the process of acquiring shares in Ngoc Nghia Industry - Service - Trading Joint Stock Company (NN), as per the company's press release.
NN is a leading polyethylene terephthalate (PET) converter in Vietnam with long-standing relationships with major brands. It has four manufacturing sites in both the North and South of Vietnam. It has a total production capacity of approximately 5.5 billion units of PET preforms, bottles and closures, or equivalent to a PET conversion of 76,000 tons per annum.
Operating with high quality standards, NN is a trusted provider of PET packaging products to major multinational and Vietnamese brands in the beverage and non-beverage industries. Its business operations are run by an experienced management team with strong industry knowledge as well as local market exposure and understanding. These competitive advantages are strategic fits for IVL and would complement the company’s long-term growth after integration. This proposed acquisition will strengthen IVL’s market position in the packaging business in high growth markets of the Asia-Pacific region.
The acquisition process is required to follow the Law on Securities, its guiding decrees and circulars as required by the State Securities Commission of Vietnam and regulations of the Hanoi Stock Exchange. Through its affiliate, Indorama Netherlands B.V., IVL would be required to do the tender offer of all of NN’s shares. The transaction is expected to be completed by the first half of 2022.
As MRC wrote before, in November 2021, the board of directors of IVL, a large producer of recycled PET for beverage bottles, approved the purchase of land, buildings and utility machinery from Aurus Specialty to utilize for a proposed PET recycling facility in Thailand. The assets, valued at a total of 112.90-million baht, will be acquired by Indorama Polyester Industries and Indorama Holdings, direct subsidiaries of IVL. Subject to approval from the board of investment, the transaction is expected to be com-pleted in the first quarter of 2022.
According to MRC's ScanPlast report, Russia's estimated PET consumption grew to 737,590 tonnes in the first eleven months in 2021, up by 14% year on year. PET consumption in Russia grew by 25% in November and reached 75,760 tonnes versus 60,520 tonnes a year earlier.
Indorama Ventures Public Company Limited, listed in Thailand (Bloomberg ticker IVL.TB), is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia Pacific, Europe and Americas. The company’s portfolio comprises Integrated PET, Olefins, Fibers, Packaging and Specialty Chemicals. Indorama Ventures products serve major FMCG and automotive sectors, i.e. beverages, hygiene, personal care, tire and safety segments. Indorama Ventures has approx. 24,000 employees worldwide and consolidated revenue of US$ 11.4 billion in 2019. The Company is listed in the Dow Jones Emerging Markets and World Sustainability Indices (DJSI).