Monday, Nov 15, 2010
(Adds quotes from chief executive, investment details)
By Oranan Paweewun
of DOW JONES NEWSWIRES
BANGKOK (Dow Jones)--Integrated polyester chain producer Indorama Ventures PCL (IVL.TH) plans to invest $1.2 billion in two polyester plants, one in India and the other in the Middle East, Indorama Group Chief Executive Aloke Lohia said Monday.
Indorama Ventures has aggressively expanded its business through both organic and non-organic growth to secure strong earnings growth. So far this year, Indorama Ventures has invested $760 million to expand its business, $608 million of which has been spent since the beginning of the fourth quarter.
"We have never had any plant in India and we see significant potential in India," said Lohia.
Each plant will have an annual production capacity of 500,000 metric tons of polyethylene terephthalate polymers, or PET, and 1 million tons of purified Terephthalic Acid, or PTA, he said at a meeting with analysts and investors.
PET is used by bottlers while PTA is used in the fiber and yarn industry.
The construction of both plants is expected to commence in 2011 and end in 2014, he told reporters. The company is seeking raw materials to supply both plants prior to the construction of the plants, he said.
Of the total $608 million the company has spent on expansion in the fourth quarter, $420 million has been earmarked for acquiring PET polymer and resin manufacturing facilities in South Carolina and Mexico, $95 million in raising its stake in TPT Petrochemicals PCL to 99.9% from 54.7%, and the remainder in acquiring and debottlenecking PET and polyester polymers manufacturing facilities at Guangdong Shinda in China.
Debottlenecking will start next year but he didn't elaborate by how much capacity will be raised.
The China plant now has a capacity of 406,000 tons per annum.
-By Oranan Paweewun, Dow Jones Newswires; 662-690-4200; oranan.paweewun@dowjones.com
(END) Dow Jones Newswires
15-11-10 1123GMT
