The acquisition fills an important gap in IVL’s global footprint in fibres by establishing capacity in South America’s largest economy, Brazil. It also offers IVL an opportunity to participate in the domestic market along with strategic and logistic advantages from established free trade agreements with other Latin America countries. The demand in Brazil is expected to grow in response to a recent recovery in consumption.

Plant

The plant is in close proximity to Indorama Ventures’ PET site and also the third-party PTA site in Brazil. Further synergies will be realized by using a jointly located Sao Paolo commercial office. Having a local manufacturing base, IVL is also in an advantageous position to expand more into nonwoven applications which are growing strongly in Brazil, supported by the presence of global brands.

Brazil has a very innovative textiles industry and its relatively high consumer purchasing power is driving the growth in nonwoven and filling fibres. IVL’s strategy is to continue to serve the growing needs of the existing customers of M&G, as well as the needs of IVL’s global branded customers in this fast-growing economy and stay ahead of the curve in introducing quality products.

Location

“Brazil, with its large spinning industry is a natural place for the textiles industry to enjoy long-term growth due to its location and large population.  We intend to support the local spinning industry with a commitment to supply high-quality fibres to blend with cotton and reduce dependence on imports,” commented Aloke Lohia, Group CEO of IVL.

“In addition, IVL will also be able to support the local nonwoven manufacturing industry by supplying specialised fibres produced with the know-how from our global manufacturing businesses. We look forward to the continued support of the Government of Brazil in developing a robust and self-reliant textiles sector.”

Indorama Ventures is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia, Europe and North America. The company’s portfolio comprises Necessities and High Value-Added (HVA) categories of polymers, fibres, and packaging, selectively integrated with self-manufactured Ethylene Oxide/Glycols and PTA.

Indorama Ventures products serve major FMCG and automotive sectors, i.e. beverages, hygiene, personal care, tire and safety segments.

www.indoramaventures.com