Rising PTA capacity and robust demand to fuel growth at Indorama

19-Sep-05

Indorama Polymers (IRP) is Thailand's leading PET producer with a 45% domestic market share. IRP is expected to become the seventh largest player in the global market as global PET demand continues to be robust and an increase in feedstock supply will also be witnessed shortly as increased capacity of PTA is expected to come onstream. Demand for PET is forecast to grow at an average of 8.2% pa, which translates to one million tpa to 2008. The total market for PET has increased by almost 50%, from 7.2 million tons in 2000 to 10.5 million tons in 2004, and is forecaste to jump a further 53% to 16.1 million tons by 2010. IRP has seen a 45% capacity increase this year- a rise of almost 36,000 tpa at its US subsidiary, StarPet, USA. IRP's new facility in Lithuania, Orion Global Pet (OPT), with a capacity of 198,000 tpa commences production in Q1-2006. IRP's earnings are expected to rise a further 61% in 2006 to 1.16 billion baht as the company plans capacity increase from 226,000 to 424,000 tpa.