Sector News

IVL, Dhunseri form joint venture to acquire Egypt PET plant

June 15, 2018
Chemical Value Chain

Indorama Ventures Public Co Ltd (IVL) and India’s Dhunseri Petrochem have teamed up to acquire and restart a 540,000 tonne/year polyethylene terephthalate (PET) facility in Egypt, the Thai producer said on Friday.

A 50:50 joint venture was formed between IVL indirect subsidiary, Indorama Netherlands, and Dhunseri for the purchase of the PET plant of Egyptian Polyester Company SAE (EIPET), IVL said in a statement.

“Restart activities for manufacturing recyclable PET has commenced and key raw material PTA [purified terephthalic acid] will be shipped from IVL Portugal soon after restart of Portugal PTA production anticipated in early July 2018,” IVL said.

The Thai company signed definitive agreements for the joint venture and the acquisition of up to 50% of EIPET but financial details were not disclosed.

EIPET is one of the largest PET producers in the Middle East and Africa, with its production site in Ain Sokhna free trade zone, northwest of the Gulf of Suez.

The acquisition will increase IVL’s existing global PET capacity by 10%, it said.

“EIPET also marks Indorama Ventures’ maiden entry into Egypt, complementing our existing footprint in EMEA [Europe-Middle East-Africa],” IVL’s CEO Aloke Lohia said.

IVL said that EIPET will help Egypt generate $300m of positive trade balance as imported resin is phased out and net exports of resin and packaging commence.

“EIPET will provide meaningful opportunities for feedstock integration from our existing assets while allowing us to serve our customers in growth markets of Egypt and in the region,” Lohia said.

IVL and Dhunseri have an existing joint venture in India since 2016.

By Pearl Bantillo

Source: ICIS News

comments closed

Related News

June 24, 2022

BASF to build commercial scale battery recycling black mass plant in Schwarzheide, Germany

Chemical Value Chain

BASF will build a commercial scale battery recycling black mass plant in Schwarzheide, Germany. This investment strengthens BASF’s cathode active materials (CAM) production and recycling hub in Schwarzheide. The site is an ideal location for the build-up of battery recycling activities given the presence of many EV car manufacturers and cell producers in Central Europe.

June 24, 2022

Clariant restructures business units, reorganizes leadership

Chemical Value Chain

Clariant says it is reducing its number of businesses from five to three, by merging units, under a reorganization that is in line with the company’s purpose-led strategy and cultural transformation. The moves will position Clariant for long-term sustainable growth, the company says.

June 24, 2022

Chemicals & Plastics Procurement: what to expect in the second half of 2022

Chemical Value Chain

Chemicals & plastics industry has the most diversified end-use market across all manufacturing industries. The industry returned to growth in 2021 but a supply chain crunch prevented it from becoming stronger. The market is likely to stabilize in the second half of 2022 with a supply-demand balance.