BANGKOK, Thailand — January 7, 2015 — IVL has agreed to acquire BP Chemical’s Decatur, Ala.-based business that has a total capacity of ~1.8 million tons/year consisting of integrated Paraxylene and PTA manufacturing as well as the world’s only commercial plant to manufacture NDC, a specialty chemical used in performance polymers and films for application such as smart-phone screens. The transaction is expected to complete in the first half of 2016 and is subject to the usual regulatory approvals.
Aloke Lohia, Group CEO of Indorama Ventures, said: “2015 was a truly transformative year for IVL and the transactions signed up are a game changer for the industry. Our industry faces continually new challenges and IVL has taken these times as an opportunity to remain focused and surge ahead to deliver a distinct and compelling investment platform with scale advantages, technology ownership and innovative products which our customers can rely upon, creating the IVL differentiation.”
IVL is firmly on track to fulfill on its 2015 capital day announcement, which was re-affirmed in its mid-year strategy review in July 2015, to achieve double-digit EBITDA margins and 2X core EBITDA growth by the end of 2018 compared with 2014, which saw a core EBITDA of $600 million. At the same time IVL aspires to achieve 4X core EPS growth by end 2018 over 2014. The below-mentioned transactions will be major accelerators in IVL’s ongoing transformation, through which we are creating significant growth and portfolio enhancement to each of our three powerful verticals: PET, Feedstock’s and High Value Add (HVA) businesses that are interlinked and are synergistic to deliver enhanced value for all our shareholders and our customers.
- BP Alabama, United States — Feedstock independence and HVA growth
- MicroPet, India — Core business entry in the fastest growth market with the largest population.
- CEPSA, Spain — Feedstock independence, EU wide coverage of PET and maiden entry into IPA, an HVA business enhancement.
- Ethylene Cracker, Louisiana, United States — Feedstock independence and leverage on shale gas economics.
- CEPSA, Canada — Feedstock independence in North America.
- Bangkok Polyester, Thailand — Consolidation of core PET business and supply chain integration with captive PTA.
Posted January 9, 2016