Thailand’s Indorama Ventures PCL (IVL), a petrochemical producer, has bought the purified terephthalic acid (PTA) business of Montreal-based Cespa Química SA – a wholly owned affiliate of Cepsa, and IQ Chemie INC, a subsidiary of Investissement Québec.
The acquisition will allow IVL to expand its footprint in North America since the newly acquired Cepsa is the only PTA facility in Canada, and one of only three in North America. PTA is used primarily in polyester production including polyester fibre, PET bottle resin, and polyester film.
According to IVL CEO Aloke Lohia, this is the company’s inaugural entry into Canada. “Cepsa Chimie Montreal SEC provides us the unique opportunity to acquire assets that will consolidate our North American polyester value chain businesses for added feedstock security. The acquisition is in line with our strategy of expanding in our core businesses, primarily in the West.”
Terms of the deal were not disclosed. The acquisition is expected to be completed in the second quarter of 2015, subject to regulatory approvals.
IVL reported annual revenue of US$7.5 billion in 2014, employs 14,000 people and has 51 manufacturing sites.
(PRA)
