Indorama Ventures signs definitive share purchase agreement with Bangkok Polyester

Thailand’s Indorama Ventures Public Company Limited (IVL) informed on Wednesday that its subsidiary Indorama Petrochem Limited, Thailand has signed a definitive share purchase agreement with Bangkok Cable Company, Limited, a major shareholder, to acquire 94.91 percent equity stake in polyethylene terephthalate (PET) polymers maker Bangkok Polyester Public Company Limited (BPC), Thailand.

Bangkok Polyester is a producer of PET polymers in Rayong, Thailand, with an annual capacity of 105,000 tons.

The transaction, subject to customary approval, is expected to be completed in the second quarter of 2015.

IVL’s PET segment accounts for half of the company’s overall production. As of end-2014, its PET capacity stood at 3.1m tonnes, up 7% from 2.9m tonnes in 2013.

In February, IVL had said that it will shell out a total of $2.2bn in capital expenditures over three years (2015-2018)– $1.9bn for growth and $300m on maintenance. The capex will be funded through a combination of cash flow and debt.

The company has announced $600m worth of projects that it will invest on, with additional projects worth $900m “under active discussions”, it said in the notes accompanying its full-year financial results.

If all the projects are completed this year, IVL said that they should boost the company’s capacity by a quarter.

Among IVL’s acquisitions that will be completed this year is Polyplex Turkey – the Thai firm’s second plant acquisition in the European country.

The deal, expected to close in the first quarter of 2015, will bring Indorama’s capacity in Turkey to 382,000 tonnes/year, following its acquisition of the 130,000 tonnes/year Artenius Turkpet PET plant last year.

In December 2014, IVL had signed a definitive agreement to fully acquire Performance Fibers Asia (PF Asia), which producres 41,000 tonnes/year of polyester tyre cord frabic and 48,000 tonnes/year of polyester tyre cord yarn in China’s Guangdong province.