Indorama makes foray into Vietnam with NN deal
published : 13 Jan 2022 at 04:00
newspaper section: Business
Indorama Ventures' expansion bid to Vietnam through the stock acquisition in Ngoc Nghia Industry-Service-Trading Joint Stock Company (NN) is expected to be completed in the first half of this year.
NN currently has four manufacturing sites in the north and south of Vietnam with a total production capacity of 5.5 billion units of polyethylene terephthalate (PET) preforms, bottles and closures.
Dilip Kumar Agarwal, Indorama Ventures' chief executive of combined PET and integrated oxides and derivatives (IOD), said the proposed acquisition would foster sustainable growth in the firm's largest business segment of combined PET.
"This investment opportunity is in line with IVL's business strategy of expanding our footprint in rising economies like Vietnam. The country is positioned to be the Asean production hub for the Asia-Pacific region," said Mr Agarwal.
"Moreover, Vietnam's PET packaging market is expected to grow continuously due to strong growth in consumption and improving living standards."
Furthermore, IVL added that NN has substantial local market exposure, which serves as an excellent advantage for IVL's long-term success following the integration, especially in high-growth markets of the Asia-Pacific region.
The acquisition has not been finalised yet as it is required to follow the Law on Securities, guiding decrees and circulars as required by the State Securities Commission of Vietnam, and regulations of the Hanoi Stock Exchange.