Indorama to gain from Thai and European acquisitions as Asian PTA markets begin to recover after 2 years

12-Aug-09

Indorama Ventures Ltd (IVL) expects to gain from its acquisitions completed last year in Thailand and Europe, coupled with commencement of recovery in purified terephthalic acid (PTA) in Asia after a two year long downcycle. The 710,000 tpa Indorama Petrochemicals Ltd., the 550,000 tpa TPT Petrochemicals Plc. In Thailand and a PTA facility in Europe have been Indorama’s acquisitions in 2008-09. These acquisitions add a total of 1.6 mln ton PTA capacity to the company’s product offering. Deviating from its original business of PET (polyethylene terephthalate), Indorama decided to shift focus to a more vertically integrated model, triggering a move to PTA. This move will ensure a stable and steady supply of PTA- a feedstock for PET.