M&As: Indorama acquires PET recycling from Custom Polymers; receives go ahead to acquire M&G’s plant in the US

Thailand-based Indorama Ventures Public Company Limited (IVL), a global chemical producer, is to acquire a PET recycling facility from Custom Polymers PET in Alabama, US. The facility consists of two production lines; recycled polyethylene terephthalate (rPET) flake and food-grade rPET Pellets, with a combined capacity of 31,000 tonnes/year.

IVL says that regardless of the fluctuations in the quality of post-consumer feedstock, this recycling facility can offer consistently high quality recycled PET material that meets customers’ specific needs in packaging and fibres. IVL with Custom Polymer has important footprints in recycling in multiple locations in Europe, in Mexico, in Thailand and now in US.

A growing emphasis on sustainability and circular economy objectives among packaging and consumer product manufacturers is expected to be amongst the key factors driving market growth. This acquisition is strategically in line with the ompany’s objectives of long-term sustainability. The acquisition of this recycling facility from Custom Polymers will allow IVL to have a secured supply of rPET flake and food-grade100% rPET pellets in US, and this will open up new opportunities to meet the ever increasing food grade rPET demand for more sustainable packaging solutions by major brand owners. The proximity of this recycling facility to our existing polyester manufacturing entities in US, synergies of management and supply chain are expected to benefit IVL’s ability to serve its customers in North America.

In related news, IVL says its joint venture in the US has received all regulatory clearance required from the United States Federal Trade Commission (FTC) for the proposed joint asset purchase of M&G USA Corp. and its affiliated debtors. The purchase price was stated as US$1.125 billion.

On 21 March 2018, IVL, Alpek, S.A.B. de C.V., and Far Eastern Investment (Holding) Ltd., a subsidiary of Taiwan-based polyester producer Far Eastern New Century Corporation, entered into a joint venture agreement to acquire M&G’s Corpus Christi plant through Corpus Christi Polymers LLC. The acquisition also includes certain M&G intellectual property, and a desalination/boiler plant.

The Corpus Christi plant will have nominal capacity of 1.1 million and 1.3 million tonnes/year of PET and PTA, respectively. The three JV parties will each receive one-third of the capacity of PTA and PET produced. Each of the partners will procure raw materials independently, while also independently selling and distributing their corresponding PTA and PET. The plant is the largest in North America and is a vertically integrated PTA-PET production facility.

M&G went into liquidation, with US$1.7 billion in debt, with liquidity issues and insufficient feedstock sources forcing it to halt production at plants in Altamira, Mexico, and Apple Grove, US. Far Eastern was also the winner of the Apple Grove plant auction

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