November 12, 2010 Indorama
Acquisition of Assets and Businesses in USA and Mexico.
The Board of Directors Meeting No. 7/2010 held on November 3, 2010, and Board of Directors Meeting No. 8/2010 held on November 10, 2010, of Indorama Ventures Public Company Limited (the “Company”) has approved a resolution for the Company to acquire from Invista S.a r.l., their Polyester resins and Polyester staple assets located at Spartanburg, South Carolina, USA and to also acquire their Latin American Polyester resins and Polyester staple business (Grupo Arteva S. de R.L. de C.V. and certain of their affiliates) in Queretaro, Mexico.
The details of acquisition :
1. Spartanburg South Carolina USA facility
The assets include PET, Specialty Polymers, Fibers and Film production capacities of 470,000 tons per annum.
2. Queretaro, Mexico facility
The businesses of Grupo Arteva S. de R.L. de C.V. and its subsidiaries and affiliates includes PET, Specialty Polymers and Fiber production capacities of 535,000 tons per annum.
The total acquisition value:
The total acquisition value for both the USA and Mexico is USD 420 million inclusive of net working capital (subject to adjustment at closing) and assumption of liabilities. The acquisition value is USD 229 million for the net fixed assets plus an additional USD 174million for the net working capital of the business and the balance for assumed liabilities.
The consideration for acquisition shall be paid by cash.
In this regard the
Company has signed a definitive agreement with the Seller on
November 12, 2010. The transaction is expected to close during
the first quarter of 2011.
INVISTA is one of the world’s largest integrated producers of polymers and fibers, primarily for nylon, spandex and polyester applications. With a business presence in over 20 countries, INVISTA’s global businesses deliver exceptional value for their customers through technology innovations, market insights and a powerful portfolio of global trademarks.
INVISTA’s Spartanburg site is located on approximately 640 acres in South Carolina, USA.
The site produces PET, Specialty Polymers, Fibers and Film with end uses including bottles for carbonated soft drinks, water, juice, food and other custom-container applications, and fibers and specialty polymers for a variety of applications. The Spartanburg site has a fully fitted application laboratory with pilot facilities for polymers as well as for injection moldings and bottle blowing. The total capacity for all its product range is 470,000 tons per annum
INVISTA’s Queretaro site is located on a 90 acre site in Central Mexico located ideally to serve this market. The site produces PET, Specialty Polymers,and Fibers similar to that produced at INVISTA’s Spartanburg operation. The total capacity for all its product range is 535,000 tons per annum.
This acquisition will allow the Company to build upon its expanding global platform, making the Company the largest PET producer in the world and at the same time complement the strategy to increase its footprint into new higher growth markets of Central and Latin America. Million ton capacities with a customer base are rare opportunities and this deal will strengthen our value proposition to our customers and stakeholders alike and further reinforce our ongoing commitment to the Polyester value chain.
November 12, 2010 Invista
Indorama Ventures to Purchase INVISTA’s Spartanburg, S.C. and Querétaro, Mexico Polyester Businesses
Indorama Ventures to become the largest PET producer in the world
Indorama Ventures Public Company Limited announced today that it has signed a definitive agreement to acquire PET polymer and resins manufacturing facilities located in Spartanburg, S.C. and Querétaro, Mexico from certain subsidiaries of INVISTA B.V.
The total value of the acquisition will be $420 million less certain assumed liabilities, and includes $229 million for the net fixed assets and equity interests, as well as $174 million for the net working capital of the business, subject to customary adjustments at closing. The transaction is expected to be financed from a combination of cash on hand, amounts available under existing credit facilities and additional debt. The parties anticipate the transaction will close in the first quarter of 2011, pending receipt of necessary regulatory approvals.
INVISTA’s Spartanburg, South Carolina facility produces polyester resins used in bottles for carbonated soft drinks, water, beer, juice, and wine; food and custom-container applications, and polyester staple fiber and specialty polymers for a variety of applications. The Spartanburg operation has a total capacity of 470 kMT per annum. Approximately 490 people are employed at the site.
INVISTA’s Querétaro, Mexico facility produces polyester resins and polyester staple similar to that produced at INVISTA’s Spartanburg operation. Querétaro has a total capacity of 535 kMT per annum. Approximately 510 people are employed at the site.
The combination positions Indorama Ventures as the world’s leading producer of PET and enables IVL to better meet its customers’ needs. In North America, the acquisition complements Indorama Ventures’ existing PET manufacturing site at Asheboro, N.C. (StarPET) and its state-of-the-art MTR PET Resin facility at Decatur, Alabama (AlphaPET). Additional benefits for IVL will include:
The transaction is expected to be accretive to IVL’s earnings in the first full year of acquisition (pre-synergies). Indorama Ventures believes that there is a further opportunity to create value for its shareholders through synergy capture.
“We believe INVISTA’s Spartanburg and Querétaro businesses complement Indorama Ventures’ existing U.S. business,” said Chris Hamman, president of INVISTA Polymer & Resins. “I want to extend thanks and appreciation to all INVISTA employees involved in our polymer and resins business for their dedication through this process, and for building a business that so capably delivers innovation and value to its customers.”
“This planned acquisition will allow IVL to build upon our expanding global platform, make the company the largest PET producer in the world, and deliver on our strategy to enter into new higher growth regions like Central and Latin America,” said, Aloke Lohia, Group Chief Executive Officer of Indorama Ventures. “We believe these valuable assets will further strengthen our capability and reinforce our ongoing commitment to the PET and Fiber business. We are truly excited as such million ton opportunities are seldom available. Furthermore, INVISTA’s innovative products and a recognized brand will allow Indorama Ventures to enhance its value proposition to its customers and stakeholders, considering the depth of management and knowledge that reside at these facilities supporting manufacturing, R&D and Post Consumer Recycling (PCR),” added Mr. Lohia.
It is currently anticipated that essentially all of INVISTA’s Polymer & Resins’ operations, marketing, sales, customer service, and research and development staff associated with the Spartanburg and Querétaro operations will be employed by Indorama after the sale is finalized, along with INVISTA Polymer & Resins’ staff associated with that portion of the business based at administrative offices in Charlotte, North Carolina; and Santa Fe, Mexico.
INVISTA Polymer & Resins’ Wilmington, N.C. site is not a part of the transaction, nor is INVISTA’s European Polymer & Resins business, which includes manufacturing operations in Gersthofen, Germany. INVISTA will also retain certain intellectual property related to the polymer and resins business.
Deutsche Bank Securities Inc. acted as exclusive financial advisor, Lowenstein Sandler PC acted as lead counsel, and Jáuregui Navarrete y Nader, S.C. served as Mexican counsel to IVL on this transaction. On behalf of INVISTA, Morgan Stanley & Co. Incorporated acted as exclusive financial advisor and Latham & Watkins LLP acted as lead counsel.
Indorama Ventures Public Company Limited, listed in Thailand (Bloomberg ticker IVL.TB) 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 fiber, which are distributed across the world. IVL has approximately 3,500 employees worldwide and annual consolidated revenue of $2.3 billion in 2009.
November 11, 2010
Acquisition of Polymer Resin Business in China
The Board of Directors Meeting No. 8/2010 of Indorama Ventures Public Company Limited (the "Company") held on 10 November 2010 has approved the acquisition of a plant with an installed capacity of around 406,000 tons per annum from Guangdong Shinda UHMWPE Co., Ltd (the "Seller") having its manufacturing facility in Kaiping City, Guangdong Province of China広東省開平市. The plant facility produces PET polymers and Polyester polymers for fibers & yarns and industrial applications.
Guangdong Shinda UHMWPE Fiber Co., Ltd. is located at Kaiping City , Guangdong Province, P.R.China.
The registered capital of the Company is 584.07 million RMB. At Present, we have developed into one of the biggest polyester chips enterprise with annual output of 420 thousand tons, and have invested in constructing UHMWPE Fiber超高分子量ポリエチレン producing business with annual output of 5000 tons, that will make UHMWPE Fiber output of the company at the No. two position in the world, and the No. one in Asia. Our polyester chips products have passed the ISO9001 quality system certification, which can satisfy requirements of all kinds of customers. In addition, bottle grade chips have been in conformity with the essential requirements of EEC, FDA(USA),UK Statutory Instrument, and Coca Cola company.
We all along stick to our motto of innovate independently, pursue development . Furthermore, we continuously perfect the product structure of polyester industry chain, Meanwhile, we devote to develop UHMWPE fibre products of high-tech, high-value and huge market potential, so as to make more contributions of the development to industrialization development of UHMWPE Fiber in China .
In this regard the Company has signed a definitive Asset Transfer agreement with the Seller on November 11, 2010 in Bangkok. The transaction is expected to be finalized sometime in the first quarter of 2011, pending required regulatory approvals as well as certain conditions precedent by the vendor.
This is the first investment of Indorama Ventures PCL in China and will allow IVL to establish its footprint in one of the fast growing countries for PET.
The value of the acquisition, calculated in accordance with the regulation of the Capital Market Supervisory Board and the Stock Exchange of Thailand, is less than 15 percent as prescribed by the regulation of the Stock Exchange of Thailand Re: Disclosure of Information and Other Acts of Listed Companies Concerning the Acquisition and Disposition of Assets, 2004 (as amended).
The Company plans to set a wholly foreign owned enterprise (WFOE) in China to take over these assets.
2012/2/7 Indorama Ventures
Acquisition of 100% Partnership Interest in Ethylene Oxide/Ethylene Glycol Facility in USA
The Board of Directors of Indorama Ventures
Public Company Limited (“IVL”) approved the acquisition of 100% partnership
interest in Old World Industries I Ltd., and Old World
Transportation Ltd., (collectively called “Old World”), located in Clear
Lake, Texas, USA.
Old World, is the largest single EO/EG production facility in the U.S. with Crude EO capacity of 435,000 tons per annum. Mono Ethylene Glycol (MEG) is one of the key components, together with Purified Terephthalic Acid (PTA), in the manufacture of Polyethylene Terephthalate (PET) and Polyester Fibers and Yarns, both downstream products of IVL.
IVL has signed a definitive Purchase Agreement on 6 February 2012 with the seller in USA and the Company expects the closing of the transaction within first quarter of 2012 subject to the applicable regulatory approvals.
Old World is in the business of production and sales of ethylene oxide “EO” and derivative products from ethylene oxide: purified ethylene oxide “PEO”, monoethylene glycol “MEG”, diethylene glycol “DEG”, and triethylene glycol “TEG”. The plant is located within a large petrochemical hub in Clear Lake, Texas, USA. The facility is strategically located within close proximity of raw materials and utilities. Further, the plant is connected with an efficient network of logistics including pipelines, deepwater terminal, railcars and trucks.
The main raw material required for production is ethylene which is available from merchant sellers through multiple pipelines connected to the plant facility. The plant employs technology from Shell. The production capability provides flexibility to service both EO and glycol markets. Old world has a large, diversified and blue chip customer base of leading specialty and industrial customers and consumer goods manufacturers.
Alcohol Ethoxylates is a product made from
PEO mixed with alcohol.
Old World through a third-party tolling arrangement converts PEO into Alcohol Ethoxylates to serve its customer base of ethoxylates.
November 12, 2015
Cepsa reaches agreement to sell PTA business
to Indorama Ventures
With this disinvestment, Cepsa will exit the polyester business after more than 40 years
Cepsa has agreed to sell its PTA/PIA/PET business to Thailand-based Indorama Ventures Pcl., as it seeks to focus on higher growth petrochemical areas where it is a leader.
The deal with Indorama Ventures for the sale
of the PTA/PIA/PET business is subject to regulatory approval.
Cepsa´s polyester business is highly integrated and efficient, having a relevant position in the European market.
The Company´s overriding aim was to ensure that the business would be sold to a world leader in the sector, and that working conditions for all employees at the site would remain unaffected.
Cepsa plans to focus on markets where it has a stronger presence and is able to develop its assets to their full potential, such as its Phenol/Acetone and LAB/LABSA operations in Spain, Canada, Brazil, China and Indonesia.
Cepsa will continue to supply the petrochemical facility with raw materials as well as fuel and heat to run the plant. The Company will also continue to handle maintenance operations through a service contract.
Indorama Ventures is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia, Europe and North America. The company’s portfolio comprises Necessities and High Value-Added (HVA) categories of Polymers, Fibers, and Packaging, selectively integrated with self-manufactured Ethylene Oxide/Glycols and PTA. IVL products serve major brand-owners and FMCG companies in consumer products and niche applications, i.e. Beverages, Hygiene, Personal Care and Safety segments. IVL has ~14,000 employees worldwide and consolidated revenue of US$ 7.5 billion in 2014.Madrid, August XX, 2015.
Cepsa is an energy group, 100% IPIC-owned (アブダビ国営の投資会社) employing more than 10,500 professionals and present at all stages of the hydrocarbon value chain: exploration and production of petroleum and gas, refining, transport and marketing of petroleum and natural gas derivatives, biofuels, cogeneration and marketing of electric energy. Cepsa has developed an important petrochemical area, highly integrated with the area for petroleum refining, in which it manufactures and markets raw materials in order to create products with high added value which are mainly used for the production of next generation plastics and biodegradable detergents. It has a significant presence in Spain and, by progressively internationalizing its activities, it is now also active in 15 countries, selling its products throughout the world.
IPICはスペインCEPSAに25%出資していたが、 2009年に47.1% にまで増やし、2009年8月にTotal から48.83% を買収、最終的に100%をおさえた。
June 1, 2015
Cepsa closes sale of its PTA business in Canada to Indorama
Cepsa concluded the sale of its purified terephtalic acid (PTA, raw material used to produce polyester) industrial plant in Montreal to Thailand-based Indorama as part of its strategy to focus on higher growth petrochemical areas where it is a leader.
The sale, which was first announced in March, has been concluded following regulatory approval by the competition authorities.
Cepsa´s main aim during the sale process is to guarantee that its PTA business, which makes the raw material used to produce polyester, is sold to a world leader in the sector, and that workers´ rights are not affected. The sale of the Canadian PTA plant will allow Indorama to become an integrated player in the PET market in North America.
Meanwhile, the sale allows Cepsa to focus its plans on those markets where it has a strong presence and ability to develop to their full potential the assets that it has, such as in its phenol, acetone and LAB/LABSA (raw material used to produce detergents) businesses in Spain, Canada, Brazil, China, and Indonesia.
Indorama is a world leader in the production of polyester and the acquisition gives it a stronger position in the North American market. Indorama consumes around 1.1 million tons of PTA a year in North America, for the subsequent production of PET. The company has 14,000 staff and an annual turnover of $7.5 billion.
Cepsa, 51% owner of its Bécancour chemical plant, has agreed to purchase the remaining 49% stake from Investissement Québec as part of its international growth and expansion plans in its petrochemicals business.
Cepsa’s Bécancour plant produces and markets Linear alkylbenzene (LAB), the raw material used in the production of bio-degradable detergents. Cepsa is a leader in LAB, with a capacity of over half a million tons a year, representing 13% of world supply. The Bécancour plant has a capacity of 120,000 tons a year, providing an important part of LAB production across North America.
Indorama Ventures signs 8th highly
complementary acquisition since Jan 2015.
IVL to acquire Aromatic, PTA and Specialty business in USA
IVL has agreed to acquire BP Chemical’s Decatur, Alabama business (with a total capacity of ~1.8 million tons/year) consisting of integrated Paraxylene and PTA manufacturing as well as the world’s only commercial plant to manufacture NDC, a specialty chemical used in performance polymers and films for application such as smart-phone screens. The transaction is expected to complete in the first half of 2016 and is subject to the usual regulatory approvals.
IVL to acquire petrochemicals complex of BP Amoco Chemical’s Decatur Site in Alabama, USA (“BP Decatur”)
Integrated PTA capacity (with paraxylene) of ~1.0 million tons per annum
World’s only commercial manufacturer of naphthalene dicarboxylate (NDC* ナフタレンジカルボン酸 ジメチル), a specialty chemical used in performance polymers and films for application such as smartphone screens
Enhances feedstock integration with PTA and PX
Entering adjacent specialty, high margin NDC business
Strong near-term value through substantial cost synergies
Additional upside from growth synergies
Adjusted Net Revenue $1B (2014) & Adjusted EBITDA $95M (2014)
Transaction expected to be completed in 1H 2016 subject to regulatory approvals
Aloke Lohia, Group CEO of Indorama
Ventures, said, “2015 was a truly transformative year for IVL and the
transactions signed up are a game changer for the industry. Our industry
faces continually new challenges and IVL has taken these times as an
opportunity to remain focused and surge ahead to deliver a distinct and
compelling investment platform with scale advantages, technology
ownership and innovative products which our customers can rely upon,
creating the IVL differentiation.”
IVL is firmly on track to fulfill on its 2015 capital day announcement, which was re-affirmed in its mid-year strategy review in July 2015, to achieve double-digit EBITDA margins and 2X core EBITDA growth by the end of 2018 compared with 2014, which saw a core EBITDA of $600 million. At the same time IVL aspires to achieve 4X core EPS growth by end 2018 over 2014.
The below-mentioned transactions will
be major accelerators in IVL’s ongoing transformation, through which we
are creating significant growth and portfolio enhancement to each of our
three powerful verticals: PET, Feedstock’s and High Value Add (HVA)
businesses that are interlinked and are synergistic to deliver enhanced
value for all our shareholders and our customers.
IVL to invest in Dhunseri Petrochem Ltd (DPL) PET plant located in Haldia (East India)
Capacity of 480 KMT PET with captive coal based power plant
IVL to enter into equal Joint Venture with DPL by acquiring 50% of their PET assets in India and
divesting 50% of recently bought IVL PET assets in India (Micropet)
Combined capacity share of IVL & DPL post JV is ~38% of Indian PET capacity
MEG pipeline connectivity from port
Nearby PTA supplier
JBF Industries Ltd.
PET usage per head is just 0.6 KG per
annum in India compared to 2.6 KG per annum in China and 10.9 KG per annum
in USA. This joint venture is a win-win for both producers with 700,000
tonne/annum of combined capacity in the strongest growth market having a
population in excess of a billion people, as well as having favorable trade
agreements with logistically advantaged countries in the region. The joint
venture will gain significant synergy benefits being the sole producer of
PET Resin in North and East India and with both sites being effectively
integrated with third party PTA suppliers, which will bring savings in SG&A
and procurement. IVL’s global market reach and high utilization rates are
expected to supplement Haldia’s location benefit at Eastern India’s largest
port while MicroPet enjoys a strong location advantage in the high-demand
territory of North India.
Mr. Aloke Lohia, Group CEO and Founder of IVL said, “This joint venture will allow us to gain the highest benefits by covering a larger geographical area of the fast-growing India market with a complementary and experienced partner. India has a well-educated and booming middle class that will embrace the modern, hygienic lifestyle offered by PET packaging.”
Mr. C. K. Dhanuka, Chairman of Dhunseri said, “Dhunseri believes that coming years will bring opportunities for expansion in the Petrochem sector and this joint venture will bring scale benefits to all stakeholders. The Indian JV between both the organizations will benefit from IVL’s global presence and technological leadership.”
December 1, 2015
Thailand's Indorama Ventures acquires PET maker MicroPet
MicroPet is the sole polyethylene terephthalate (PET) manufacturer in Northern India with a production capacity of 216,000 tonnes
Indorama Ventures Public Company Limited (IVL), the Thailand-based producer of intermediate petrochemicals, has acquired Micro Polypet Private Limited (MicroPet), a polyethylene terephthalate (PET) manufacturer. MicroPet has a manufacturing plant in Panipat (Haryana) with a capacity of 216,000 tonnes.
“This is a unique opportunity for us to establish a foothold in one of the world’s fastest-growing developing economies. The acquisition strategically extends our footprint and scale and enhances our relationship with the world’s fast moving consumer goods brands, all of who have their eye on this huge consumer market,” Aloke Lohia, group CEO of Indorama Ventures.
MicroPet is the sole PET manufacturer in Northern India and has virtual integration with the Indian Oil Corporation (IOCL) for its two major feedstocks - purified terephthalic acid (PTA) and mono-ethylene glycol (MEG). Currently, MicroPet has approximately 12 percent of the capacity share in India, a country with a population of 1.25 billion. It utilises melt-to-resin technology that Indorama Ventures has experience with at its AlphaPet plant in Alabama, USA.
Aloke Lohia added, “We are entering at the early stages of PET usage as just 0.6 kg of PET per annum is consumed in India today compared to 2.6 kg per annum in China and 10.9 kg per annum in the US. Since we are now firmly established in two of Asia’s largest population centers, China and Indonesia, India has been the missing piece of our Asian market access.”