Indorama announces purchase of PET of the M&G factory in Brazil

One of the major creditors of the Italian M&G conglomerate, global player in PET, in reorganization in Italy and the United States since the fourth quarter of 2017 and mired in debts from U $1.7 billion the Office of your u.s. subsidiary, Indorama Thai on 16 March trumpeted the decision to buy your debtor's plant in Brazil. This is the unit of 500,000 t/a of PET in Ipojuca, in 10 years active for the port complex of Suape in Pernambuco, and 20,000 t/a recycler of polyester, located on paulista Indaiatuba. Second was released, the base of the M&G in the USA must around $ $60 million to Indorama, for the supply of raw materials. Without opening the amount involved in the purchase of assets in Brazil and how it covers unpaid by M&G resources, Indorama informed the media wait for completion of the transaction until next June. In relation to the market, said that the South American demand Indorama PET evolves the annual average of 5% and underlined the potential of the business by defining how low the Brazilian per capita consumption of resin, of the order of 2.8 pounds (same argument of Petrobras for justify your disastrous adventure in PET in the Petroquímica Suape). Finally, Aloke Lohia, CEO of Indorama Ventures Public, pointed out that, with this purchase, your company, no. 1 worldwide in PET, will be present on five continents. In the backdrop of Brazil, Indorama joins in an internal market parked on a level equivalent to half of the installed capacity of local PET, in the range of 1 million t/a. Under pressure from the global surplus of polymer, Brazilian exports of resin lock frustrating fight of sickle with international competitors for a place in the Sun in the limited South American market. To complicate the tangle, the production of 500,000 t/a in Ipojuca depends largely on the purchase of purified Terephthalic acid (PTA) of your only local competitor, the Petrochemical complex Suape, which has always operated in the red and was acquired by Petrobras Mexican group Alpek, another creditor of the conglomerate M&G. All these unknowns surrounding the investment announced were put to the President by email for Plastics in Lohia magazine, with no reply so far.