Thailand-headquartered Indorama Ventures Public Company Limited (IVL) is taking up a 51% stake in Turkish PET producer SASA Polyester Sanayi through its wholly-owned subsidiary Indorama Netherlands (IBV) from Hacı Ömer Sabancı Holding. SASA is a public-listed company on the Borsa Istanbul and IBV will be conducting a mandatory tender offer for the remaining 49% of SASA’s share at Borsa Istanbul as per requirements of Turkish Capital Markets Legislation.

SASA incorporates integrated feedstock and polymer facilities producing DMT, staple fibres, filament yarns, PET, PBT polymers and speciality chemicals with a total plant capacity of 600,000 tonnes/year. SASA supplies both Turkish and European markets.

Aloke Lohia, Group CEO said, “SASA is an exciting addition to Indorama Ventures’ portfolio that allows us extended geographic expansion into a new and fast-expanding market and territory. The company is a well-known producer in the country and is an excellent first step into the Turkish market, allowing us to leverage its HVA production facilities to provide advantaged portfolio extensions for current and new customers. Turkey provides us the potential for expansion of domestic sales and opens up the opportunity to sell into the surrounding underserved region.”

Lohia said, “The acquisition is in line with our three dimensional strategic plan to expand broadly into fast-growing underserved markets, horizontally into high value add (HVA) products to offer a deeper portfolio of products to our customers and vertically integrating into our feedstock as SASA has onsite feedstock. SASA has a rich heritage of technology and expertise which will be complementary to Indorama Ventures since SASA is now serving over 54 countries with 150 different types of products. Moreover, Turkey’s unique geographical position straddling Europe, North Africa, Central Asia and Middle East offers the potential for faster growth in both the domestic and export markets to neighbouring countries and Europe.

Turkey’s textile sector is an important area of the economy and continues to grow, being a noted exporter to the key European market. We foresee this asset being the jewel in the crown of our expansion into the Turkish market and will be a good fit for our other expansion plans in the region.

SASA’s important HVA product is Sasa Plus 88, which is an orthophthalate-free plasticiser used for the finishing of several thermoplastic materials such as PVC, rubber and others to ease and regulate the flow of the material. The company also manufactures Thermoplastic Polyester Elastomers (TPEs) and a variety of co-polyesters for demanding PET film applications like medical and PV panels. In addition, under the umbrella brand Advanite, SASA offers biodegradable polyester resin (for shopping bags), water soluble polyester and hydrolisis resistant grades. Other key HVA products include flame retardant polyester; cationic dyeable polyester and BPA free alternatives for water containers. The company has its own R&D centre equipped with pilot scale lines for both fibre and polymer developments.

Sabancı Holding is the parent company of Sabancı Group, Turkey’s leading industrial and financial conglomerate. Sabancı Group companies are the market leaders in their respective sectors that include financial services, energy, cement, retail and industrials. Listed on Borsa Istanbul, Sabancı Holding has controlling interest in 11 companies that are also listed on the Borsa Istanbul.