Indorama Ventures Public Company Limited (IVL), the World’s leading vertically integrated Polyester Value Chain producer, has acquired 100% of Artenius TurkPET, based in Adana, Turkey. Artenius produces PET resin and has 130,000 tonnes of capacity.
“Our thrust continues to be to shape the businesses of IVL to grow profitably and to deliver attractive returns to our shareholders across cycles,” says Group CEO Aloke Lohia. “Indorama leadership in the PET value chain will provide significant synergies to TurkPET in order to deliver above average returns. Turkey and its encompassing region is a fast-growing market and our investments in Turkey are part of a well-defined strategy to bolster our global leadership and competitive advantage. We expect to make further follow-on investments in this thriving economy of 76 million consumers to replicate what we have built in Thailand as we see a similar opportunity to fully leverage on all our products portfolios.”
Turkey is an attractive market with a deeply urbanized economy enjoying high PET demand growth. Its Eurasian location provides ease of access to Central Asia, Middle East, North Africa and Southern Europe via excellent land and sea infrastructure.
“We are impressed by the quality of the present management team at Artenius TurkPET and together we will be looking to expand sales into this new geographical area to better serve the domestic and regional markets. Our domestic presence in key large markets helps us to grow with our global brand clients in that region,” Mr. Lohia said.
The acquisition of Artenius Turkpet comes on the heels of an announcement on April 9, 2014 that Indorama Ventures will acquire 51% of Istanbul-listed Polyester Sanayi A.? (SASA). Both SASA and Artenius Turkpet are situated adjacent to each other and this will lend further synergies to the deals.
“Indorama Ventures is looking to Turkey as a key market for serving Europe and the near Asia-Middle East markets. Our strategy of geographic diversity combined with vertical integration and horizontal expansion into high value-added (HVA) goods is epitomized by our Turkish entry as we can now serve our globally-branded fast-moving consumer goods customers with an integrated polymer commodity and fiber HVA portfolio in a relatively low-cost environment that is ideally situated to serve developing and mature markets on its doorstep,” Mr. Lohia concluded.