MOSCOW (MRC) -- Thai petrochemical company Indorama Ventures is in advanced negotiations to buy an additional polyster materials facility from Cia Espanola de Petroleos SAU to expand in Europe and North America, said Hydrocarbonprocessing.
Indorama is in exclusive talks about the San Roque, Spain-based plant with Abu Dhabi’s International Petroleum Investment Co., the owner of Cepsa, said the people, who asked not to be identified because the information isn’t public.
No final agreement has been reached and the talks about the site with annual sales of about USD500 million could still fall apart, they said.
The Thai company is acquiring purified terephthalic acid (PTA) assets -- the raw material for polyesters and plastics used in bottles and packaging -- to boost its operations in western markets in a challenge to local manufacturers including Eastman Chemical and Dow Chemical.
Indorama shares climbed 2.8% on March 23 after it announced an agreement to acquire a Canadian purified terephthalic acid site from Cepsa. The facility in San Roque has a similar turnover, yet would be a larger investment, said the people. Indorama didn’t disclose financial terms of the Montreal deal.
Richard Jones, head of investor relations at Indorama, declined to comment. Representatives for Cepsa and International Petroleum Investment couldn’t be reached for comment and didn’t return calls and emails seeking comment.
While the Asian market for purified terephthalic acid is fragmented, North America is largely supplied by Cepsa and BP, with Alpek of Mexico and Eastman manufacturing for their own needs.
Indorama Ventures is a leading producer in the polyester value chain in Thailand with strong global network and manufacturing across Asia, Europe and North America. Its products serve major players in diversified end use markets, including food, beverages, personal and home care, health care, automotives, textile, and industrial. The company’s main products are PTA, PET and polyester fibre, which are distributed across the world.
MRC