Indorama Ventures enters into a joint venture agreement with Dhunseri Petrochem to acquire its Egyptian Indian polyester company in Ain Sokhna, Egypt

YarnsandFibers News Bureau 2018-07-09 12:37:00 – Egypt

Indorama is focused on balancing market needs for recyclable PET packaging, which has faced unparalleled economic challenges over last several years leading to uncompetitive supplies and disturbances in recent times.

The facility in Egypt will lead to easing supply concerns in North Africa and in the Common Market for Eastern and Southern Africa (COMESA) as well as the markets covered by the several Free Trade Agreements (FTA) which Egypt is a signatory to.

Aloke Lohia, Group CEO of Indorama Ventures said that, “I am delighted to extend our strategic partnership with Dhunseri through this acquisition.”

“EIPET is a good fit with Indorama Ventures’ strategy in the recyclable and sustainable PET business, where the Company aims to supplement its position and build scale in key markets. EIPET also marks Indorama Ventures’ maiden entry into Egypt, complementing our existing footprint in EMEA. EIPET will provide meaningful opportunities for feedstock integration from our existing assets while allowing us to serve our customers in growth markets of Egypt and in the region.”

The plant is strategically located, offering a logistical advantage when sourcing feedstocks and delivering end products in key markets, domestically and internationally.

The facility is one of the biggest in the Middle East and Africa and is well positioned to serve to the rising packaging needs of customers in the region and elsewhere.

The economic resurgence in the region is anticipated to moreover boost demand growth potential, which currently is at around seven per cent per annum. Both partners are confident about the reforms that President El-Sisi has brought about in Egypt.

This joint venture permits for a constant supply of recyclable PET, which encourages the development of the consumer beverage industry and increases demand for sustainable packaging.

Indorama will bring its world class capability and supply chain economics to the JV in order to competitively serve customers growing needs of sustainable packaging in Egypt and in the region as a whole and will be one of the largest project in EMEA.

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