Indorama to build PTA-PET-PSF plant in India
Indorama Ventures Public Company Limited (IVL) has announced plans to invest about US$700 million for the construction of an integrated PTA-PET-PSF facility in India.
Indorama Ventures Public Company Limited (IVL) has announced plans to invest about US$700 million for the construction of an integrated PTA-PET-PSF facility in India.
IVL has signed a Memorandum of Understanding with a related company, Indorama Synthetics (India) Ltd, for a joint venture that would construct and utilize the offtake of the plants.
IVL plans to backward integrate into the Paraxylene facility of a third party in order to ensure a captive supply of its essential raw material while providing low cost access.
Details of the capacity and location are expected to be made public once formal negotiations have been completed.
Aloke Lohia, Group CEO and founder ofIVL said, "India today is a fast-growing market that is demanding attention from the world's fast moving consumer goods companies, who are our customers. It is imperative that we are there to serve these customers and the emerging local producers who will be consuming more and more PET and PSF over the next decade.
“We are looking at the long term double digit growth in demand for such products and feel this is the right time to move into the market."
PET is commonly used in food and drinks packaging and is familiar to all as the bottles from which people consumer water and soft drinks. PSF is a polyester alternative to natural fibers and allows the manufacturers of clothing and other soft products to produce low-cost items ideally suited to a large and growing population. PTA is the major raw material used in the production of both PET and PSF.
Indorama Ventures Public Company Limited, listed in Thailand, is a leading producer in the polyester value chain in Thailand with strong global network and manufacturing across Asia, Europe and North America. Its products serve major players in diversified end use markets, including food, beverages, personal and home care, health care, automotives, textile, and industrial. The company's main products are PTA, PET and Polyester fibre, which are distributed across the world. IVL has approximately 8,920 employees worldwide and last 12 months consolidated revenue of US$5.5 billion.
Indorama Synthetics is part of the Indorama Group, and a leading manufacturer and supplier in India’s polyester sector since 1989. It offers a wide range of polyester products including PSF, partially oriented yarn (POY), draw texturised yarn (DTY), fully drawn yarn (FDY) and polyester chips.
The Indo Rama Group has a strong presence in Indonesia, Thailand, USA, Nepal and Sri Lanka, besides India. It has focussed business activities in the field of Textiles, Polyesters and Industrial Chemicals.
Source: Indorama Ventures Public Company Limited