By THE NATION
Indorama Ventures (IVL) has completed the acquisition of 74 per cent of the share capital of Medco Plast for Packing and Packaging Systems SAE (Medco Plast) from Middle East Glass Manufacturing Co (MEG) and the Samaha family.
MEG will retain a 16-per-cent shareholding in Medco Plast, and the Samaha family 10 per cent.
Medco Plast is the largest manufacturer of recyclable PET preforms, injection moulded products, and closures for all the multinational soft drink and water manufacturers operating in Egypt, with a 25-per-cent market share. Medco Plast currently has 11 state-of-the-art production lines with a combined annual production capacity of 70,000 metric tons of PET preforms.
Egypt is one of the most developed and diversified economies in the Middle East, with economic growth of about five per cent.
This acquisition will give Indorama Ventures exposure to the East African PET packaging market, complementing its existing footprint in West Africa, where the company has a presence in Nigeria and Ghana.
Indorama Ventures will bring best-in-class know-how capabilities as well as supply chain economies to further enhance Medco Plast’s leadership position and grow it into the leading regional player, according to IVL press release.
Aloke Lohia, group chief executive of Indorama Ventures, commented: “The acquisition of Medco aligns with Indorama Ventures’ strategic focus, which includes capitalizing on growth opportunities in emerging markets. Medco’s strong presence in the domestic market and a longstanding customer relationship with all beverage majors operating in Egypt will enable the Company to support growing local customers’ demand and provide a platform for further growth in the Middle East and African regions.”