Indorama acquires Cepsa, world’s 2nd largest producer PIA

Indorama acquires Cepsa, world’s 2nd largest producer of PIA

7:27 AM, 16th November 2015
Indorama acquires Cepsa, world’s 2nd largest producer of PIA
Mr Aloke Lohia, group CEO of Indorama Ventures. (File photo)

BANGKOK, THAILAND: Indorama Ventures Public Company Limited (IVL) said it has signed an agreement to purchase the purified isopthalic acid (PIA), polyethylene terephthalate (PET) and purified terephthalic acid (PTA) business of Compania Espanola de Petroleos SAU (CEPSA) in Spain.

Following the acquisition of Cepsa’s 600,000 tonne Canadian PTA assets in June, the new acquisition in Spain has 220,000 tonne of PIA, 325,000 tonne of PTA and 175,000 tonne of PET capacity. It is in line with IVL's successful strategy of vertical integration, portfolio expansion and geographic diversification.

PIA is an important part of the chemistry, half of which is used in the production of PET resin and half in important end uses, especially paints. Cepsa Spain is the only producer of PIA in Europe and is the world’s 2nd largest producer. The company owns its own advanced and patented technology, thereby providing a strong barrier to entry.

“This acquisition will catapult IVL into a leading position for PIA, which has proprietary technology, offers premium margins and has high barriers to entry. We continually seek low cost, advantageous positions in products adjacent to our core business in the polyester industry and this acquisition will ensure that we are integrated into our key verticals with a keen eye on our bottom line growth,” said Mr Aloke Lohia, group CEO of Indorama Ventures.

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