January 9, 2015 / 8:38 AM / 4 years ago

Thai Indorama to buy Turkish PET maker to expand capacity

BANGKOK, Jan 9 (Reuters) - Thailand’s leading polyester producer, Indorama Ventures PCL, said on Friday its subsidiary would acquire Turkey’s Polyplex Resins Sanayi ve Ticaret A.S. from Polyplex Europa Polyester Film for an unspecified amount.

The acquisition will boost Indorama’s annual PET production capacity in the region to 382,000 tonnes from 130,000, making it the number one in Turkey and the Southeast Europe region, the company said in a statement.

Polyplex Resins, part of Polyplex (Thailand) PCL, owns a new PET plant close to Istanbul with a planned capacity of 252,000 tonnes a year, it said.

PET (polyethylene terephthalate) is used to make plastic bottles.

“Turkey is the rising star - the fastest emerging market of Europe and OECD in fact, with strategic access to the South East European market,” Aloke Lohia, vice chairman and group CEO, said in the statement.

The company, which expects the transaction to be completed in the first quarter, said demand for PET in Turkey is growing at around 6 percent per annum.

Indorama, a leading producer of polyester chain, has been aggressive in acquisitions since 2011 to boost capacity and growth.

Last year, it acquired stakes in several companies including PHP Fibres GmbH in Germany, Turkish polyester maker Artenius TurkPET A.S. and the Asian operations of Performance Fibers Asia.

The company has marked capital expenditure (CAPEX) of not more than $450 million this year for organic expansion, acquisitions and maintenance, head of investor relations Richard Jones told Reuters.

“CAPEX should not be more than $450 million. But this does not include any other potential projects that may be completed this year,” Jones said.

At 0742 GMT, Indorama shares were up 1.53 percent, outperforming a 0.3 percent gain of the main Thai index.

$1 = 32.89 Baht Reporting by Khettiya Jittapong; Editing by Anupama Dwivedi

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