Indorama Acquires Old World
Thailand-based polyester producer Indorama Ventures PCL (IVL) has agreed to acquire Clear Lake,
Texas-based Old World Industries I Ltd. and Old World Transportation Ltd. for $795 million.
Old World is a leading producer of ethylene oxide (EO)/ethylene glycol (EG) and its derivative products including purified ethylene oxide, monoethylene glycol (MEG), diethylene glycocl and triethylene glycol. The company's EO/EG production facility is the largest in the United States, with crude EO capacity totaling 435,000 tons per year.
The acquisition gives IVL access to MEG production capability. MEG is one of the primary components used to manufacture polyethylene terephthalate (PET) resins and polyester fibers and yarns, both of which are produced by IVL. The company reports an increasing demand for polyester fibers and PET resins used in textiles, home furnishings, industrial products, hygiene products and packaging material for food and beverages. Old World's MEG production capacity totals 358,000 tons per year.
IVL's acquisition of Old World follows numerous other acquisitions over the last year - most recently, polyolefin staple fiber producer FiberVisions Holdings LLC, Duluth, Ga., which, through its joint venture ES FiberVisions, also produces bicomponent fibers (See " Indorama Acquires FiberVisions Holdings," TextileWorld.com, Jan. 10, 2012).