The acquisition provides IVL a unique opportunity to add capacity in fibres and establish its presence in South America’s largest economy. © Indorama Ventures

Indorama Ventures (IVL), a leading chemical producer, have announced the completion of its acquisition of M&G Fibras Brasil, in Cabo de Santo Agostinho, Brazil. The Cabo plant manufactures and supplies polyester staple fibre, with total polymerisation capacity of 75,000 tonnes/annum.

Indorama Ventures had previously announced its agreement to acquire M&G Fibras Brasil in November 2018, following the acquisition of Brazil’s largest PET asset announced in the first quarter of 2018. This acquisition is the company’s debut into the fibre business in Brazil and is a strategic step forward. It provides IVL a unique opportunity to add capacity in fibres and establish its presence in South America’s largest economy, Brazil, the company explains.

“We are putting the puzzle pieces in place, and this acquisition is a perfect piece in the fibres market. Not only does it help strengthening our industry-leading positioning, but it also enhances our ability to serve the growing needs of customers with high-quality fibres. This acquisition will help develop our strategy in Brazil and ensure continued employment and development of the national economy as well as strengthen the fibres industry,” commented Aloke Lohia, Group CEO of IVL.

The acquisition will significantly boost IVL’s presence in the fast-growing market in Brazil, where the domestic demand is expected to grow in response to a recent recovery in consumption. In addition, IVL is well-positioned to expand more into nonwoven applications which are growing strongly in Brazil, supported by the presence of global brands.

“We are excited to welcome M&G Fibers to the IVL family and look forward to leveraging our integration capabilities to ensure that we generate the greatest value for our customers and shareholders,” continued Mr Lohia.

IVL already has a good track record of successfully integrating acquired business into its operations. IVL anticipates lowering its fixed costs by creating synergies and operating efficiencies, driven by supply chain optimization with the delivery of PTA from a nearby location, and consolidation of its commercial offices by joining with IVL’s PET site.

Indorama Ventures is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia, Europe and North America. The company’s portfolio comprises Necessities and High Value-Added (HVA) categories of polymers, fibres, and more.

www.indoramaventures.com