Thai IRP to buy Eastman PTA & PET Assets in Europe
07 Dec '07
3 min read
Indorama Holdings, Thailand (IRH) announced that, pending the signing of an agreement, its Board of Directors and the Board of Directors of Indorama Polymers, Thailand (IRP) have approved the acquisition of Eastman Chemical Company's European PTA and PET Resin assets.
Eastman is a leading PET producer in Europe with an integrated (PTA and PET resin) manufacturing capacity in Rotterdam, Holland and a PET Resin manufacturing capacity in Workington, UK.
The combined capacity of the two locations is about 340,000 tpa of PTA and 350,000 tpa of PET resin. IRH and IRP approved the acquisition for the PTA and the PET assets respectively as this activity is considered strategic and are complementary to their business.
This exclusivity is an important step towards the acquisition of the European assets of Eastman. This acquisition, when consummated, would be the third international acquisition in the polyester sector by Indorama after the successful takeover of Siam Polyester, Thailand in 1998 and StarPet Inc USA in 2003.
Post this acquisition, the Indorama Group would consolidate its position further amongst the World's largest polyester manufacturers with 2.0 million tons capacity, a 20% increase from its the current capacity and enhancement in revenue by around USD One Billion.
Commenting on this development Aloke Lohia, Chairman, Indorama Holdings, Thailand said “Indorama, is confident that this phase of consolidation in the European PET industry is the way to bring back returns in this otherwise lackluster market.
marketing@alchempro.com
