MOSCOW (MRC) -- Thailand-based producer of intermediate petrochemicals Indorama Ventures (IVL) has entered into a new agreement with Spanish multinational oil and gas company Compania Espanola de Petroleos (Cepsa) to supply metaxylene on a long-term basis, said Chemicals-technology.
The new agreement would further strengthen the strategic partnership between the two companies.
The Spanish-based company uses metaxylene for the production of Isopthalic Acid (IPA), a chemical additive used in the manufacture of polyethylene terephthalate (PET), coatings and other resins.
Indorama Ventures Group CEO Aloke Lohia said: “This agreement will allow us to cater to our customers’ growing IPA needs globally, from a reliable production platform with proven technology and a competitive supply chain infrastructure.
"The global IPA market is growing at 5% per annum and it is our responsibility as a leader to support the growth effectively."
Cepsa will be constructing a second unit for supplying metaxylene to IVL. The new Sorbex unit will have a capacity up to 70,000 metric tonnes per year and is expected to be operational by 2018.
Cepsa will be supplying the entire production of metaxylene from the existing, as well as the new facility to Indorama Ventures’ co-located site, which is also integrated with Cepsa’s refinery in Spain.
In April, Indorama Ventures acquired Cespa’s vertically-integrated business of IPA, PTA and PET in Spain.
Indorama plans for further investments in this site to improve the capacity, reliability of supply and service of goods to customers in a competitive environment.
As MRC informed previously, in January 2016, BP PLC sold its petrochemical complex in Decatur, Alabama, to Indorama Ventures Public Co. Ltd. for an undisclosed sum. Under the terms of the agreement, Indorama Ventures purchased the Decatur complex including working capital and related infrastructure and assume certain contracts with suppliers and customers. The deal was closed in early 2016. Located on 1,000 acres in Northern Alabama, the complex can produce one million tons per year of PTA, as well as paraxylene (PX), a raw material for PTA production. The site also is the world’s only commercial manufacturer of naphthalene dicarboxylate (NDC), a specialty chemical used in new-generation polyesters and resins used to make LCD flat-panel displays, ultra-thin data storage tape and other products.
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