SET-listed Indorama Ventures Plc (IVL), the world's leading petrochemical producer, has reached an agreement with Polyplex (Thailand) Plc and Polyplex (Asia) Pte Ltd of Singapore to acquire their polyethylene terephthalate (PET) resin plant in Turkey.
Istanbul-based Polyplex Europa Polyester Film San ve Ticaret has production capacity of 252,000 tonnes a year, IVL group chief executive Aloke Lohia said yesterday.
The transaction is expected to be completed this quarter.
Following the acquisition of the 130,000-tonne Artenius Turkpet plant, now renamed Indorama Ventures Adana PET, in the second quarter of 2014, IVL will have a combined capacity of 382,000 tonnes of PET resin, making IVL the No.1 domestic PET producer in Turkey and Southeast Europe.
Mr Lohia, also IVL vice-chairman, said it had expanded in Turkey as it is the fastest-emerging market in Europe.
"Europe in general has been relatively weak since 2013, which led to strategic mergers and acquisitions (M&A) by us in 2014 to improve our European, Middle East and Asia cost position and serve our customers competitively from within the region," said Mr Lohia.
Demand for PET is growing by about 6% per year, according to IVL.
DK Agarwal, IVL's chief executive for feedstock and PET business, said the company was looking for new M&A overseas and in Thailand as a major strategy to expand the company's business lines.
IVL last year announced its plan to spend 20 billion baht on M&A, with some deals due to be completed this year.
The company forecast its 2015 revenue will grow by 18% to 300 billion baht, up from 260 billion baht expected in 2014.
IVL shares closed yesterday on the Stock Exchange of Thailand at 19.18 baht, up 20 satang, in trade worth 91 million baht.