Investments: Indorama secures US$200 mn loan from IFC; Forward AM buys BASF’s additive manufacturing biz
![Indorama secures US$200 mn loan from IFC Indorama secures US$200 mn loan from IFC](http://plasticsandrubberasia.com/images/july2024/PET-Bottles-Bales.jpg)
Bangkok-based chemical producer Indorama Ventures has announced it has secured a new seven-year loan totalling US$200 million from the International Finance Corporation (IFC) to help fund the continued growth of the company’s strategic sustainability programs in India, Thailand and Indonesia, and promote a circular economy as the world’s leading PET recycler.
The loan from the IFC, which is a member of the World Bank Group focused on private sector development in emerging markets, provides a long tenor and flexibility to convert into a sustainability-linked facility based on mutually agreed sustainability targets in the future.
The funds will be used to finance sustainability initiatives that bolster Indorama Ventures’ leading strategic footprint in PET recycling. These also include enhancing efficiency at the company’s existing recycling facilities at Nakhon Pathom and Rayong in Thailand, launching a plant in Karawang in Indonesia, and establishing new recycling plants in India. Additionally, the financing will reimburse costs incurred in 2023 and 2024 for sustainability projects.
Indorama Ventures maintains a sustainable and diversified financing strategy, including an inaugural US$300 million industry-first Blue Loan in 2020, which comprised a US$150 million senior loan from IFC and parallel loans of US$150 million from the Asian Development Bank (ADB) and Deutsche Investitions-und Entwicklungsgesellschaft.
Yash Lohia, Chairman of the ESG Council at Indorama Ventures, said, “Our continued collaboration with IFC is an important part of our ongoing investment in sustainability, allowing us to expand our recycling capabilities and make a meaningful impact on the environment and communities in key emerging markets. As a global leader in the chemical industry, Indorama Ventures is dedicated to setting new benchmarks for sustainable practices and promoting a circular economy worldwide.”
In other news, Forward AM’s leadership, led by CEO Martin Back, has announced the acquisition of German chemical firm BASF’s additive manufacturing business. The acquisition includes Forward AM’s materials and solutions as well as its Sculpteo service business and leads to the creation of Forward AM Technologies, also known as Forward AM.
Supported by BASF, this strategic acquisition aims to enhance customer support, accelerate innovation, and improve market responsiveness, it adds.
Forward AM says it has had recent strong performance along with a consistent 30% annual growth rate over the past two years. This growth stands at more than double the industry average and highlights the effectiveness of the strategic direction which Forward AM takes to drive continued expansion and innovative products, it adds.
Plus, rooted in BASF’s 160-year heritage, the company is centrally positioned as the only global independent full AM portfolio provider. It will retain control over intellectual property and with its strong supply chain, the company expects to meet future demands and fulfill all contractual obligations without disruption, it said.
During the transaction, BASF provided strong support to enable the formation of an independent company which is set up for success, while also saving jobs along with all the advanced technologies developed by the team at Forward AM.
“It is a very exciting time to be part of the AM industry. Building on excellence in materials, services, and solutions, we’re going to continue to drive innovation through our work and collaborative efforts with our partners,” says Back.
“We know the manufacturing sector faces growing volatility and uncertainty, creating a demand for more resilient and sustainable materials and agile solutions. Forward AM is here to deliver on that demand head on. This new venture emphasises our continued commitment and dedication to providing expedient and robust AM solutions.”
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