Indorama Polymers Plc (IRP), Europe' eighth largest PET producer projects an increase in market share in Europe to at least 10% within the next two years. Indorama's current market share in Europe is pegged at 6%, but is estimated to dip to 5.7% next year, upon the expansion of capacity by market leader, Spain's La Seda, to 965,000 tpa from the current 790,000 tpa.
IRP envisages increasing its European market share to 10% through acquisition of PET plants located in Europe. IRP has shortlisted the company to be acquired- however the acquisition is subject to a several approvals. If the plan materializes, production capacity of IRP in Europe would expand to 578,000 tpa from 198,000 tpa.
Demand for PET in Europe, pegged at approximately 4 mln tons this year, surpassed supply of 3.3 mln tons. Demand is projected to grow at 8% pa, to 300,000 tpa from existing and new applications. PET bottle for beer is projected to be the largest growing sector for PET. 24% of the beer sold in Eastern Europe is in PET bottles while the market size of beer in the region is around 33 bln litres.
IRP plans to raise its overall production capacity to 1.1 mln tons by Q1-2009 when it completes a new US$140 mln project with capacity of 420,000 tp in the United States. IRPs' production capacity for Amorphous PET polymers at Asia Pet (Thailand) Ltd would increase to 180,000 tpa in Q3-2008 from the present 126,000 tpa.