Indorama buys new Polyplex PET plant in Turkey

Indorama Ventures has reached a definitive agreement with Polyplex to fully acquire a new PET resin plant with a planned capacity of 252,000 tpy located near Istanbul, Turkey, the company announced Thursday.

Following the acquisition of the 130,000-tpy Artenius Turkpet plant (now renamed Indorama Ventures Adana PET) in the second quarter of 2014, the company will have a combined capacity of 382,000 tons, making IVL the top domestic PET producer in Turkey and the Southeast Europe region.

“Turkey is the rising star -- the fastest emerging market of Europe and OECD, with strategic access to the Southeast European market," said Aloke Lohia, vice chairman and group CEO at Indorama Ventures.

 “Europe in general has been relatively weak since 2013 which has led to strategic M&A actions by us in 2014 to improve our EMEA cost position and serve our customers competitively from within the region," he added. "The industry consolidation, competitive currency environment and the lower raw material costs creates superior value for our customers and shareholders alike.”

Demand for PET is growing around 6%/year, the company says. With a population of 76 million with 50% under the age of 30 and 10 million new middle-class households by 2020, this makes the Turkish market itself very attractive, according to Indorama officials.

The transaction is expected to be completed in the first quarter of 2015.