IVL eyes DuPont Teijin asset
SET-listed Indorama Ventures Plc (IVL), a maker of intermediate petrochemicals, has entered the process of acquiring the film and polymer business of DuPont Teijin, a global maker of biaxially-oriented polyethylene (BOPET).
DuPont Teijin Films (DTF), a joint venture of DuPont and Teijin Ltd, is the leading producer of BOPET and polyethylene naphthalate, which is high-value-added film for the speciality, industrial, packaging, automotive, advanced magnetic media, photo systems, electrical and electronics industries.
The business comprises eight production assets in the US, Europe and China, with a global innovation centre in Britain and total annual film capacity of 277,000 tonnes.
"This acquisition will mark a new chapter for IVL," the company said in a release. "It is the next step in creating a leading position for customer solutions in films."
The global BOPET film industry has expanded rapidly and there are increasing applications and end-users. The global consumption of BOPET is expected to increase at an average compound annual growth rate of 7%.
Critical success factors are customer intimacy, product innovation and R&D capabilities, which align well with DTF's core competencies.
With the acquisition, IVL will further enhance PET integration and value enhancement through captive NDC, a speciality chemical used in high-performance polymers and films, as IVL is the world's only commercial manufacturer of NDC.
IVL posted a net profit of 7.4 billion baht in the first half of this year, down from 10.0 billion in the same period last year.
IVL shares closed yesterday on the Stock Exchange of Thailand at 44.25 baht, unchanged, in trade worth 739.1 million baht.