Indorama Ventures (IVL) has completed the 100 per cent acquisition of BP Alabama Petrochem Complex, adding economies of scale and integration to its PET business.
The complex at Decatur, Alabama, has the annual capacity of 1.02 million tonnes of purified terephthalic acid (PTA) and naphthalene dicarboxylate (NDC). It is situated adjacent to the company’s AlphaPet PET plant and has been its main supplier of PTA since the factory was commissioned in 2009. IVL did not disclose the acquisition cost.
For similar rationale of integration, scale, technology and HVA business, IVL said that in the second quarter the acquisition of the 720,000 tonne PET, PTA and IPA complex of Cepsa in Cadiz, Spain would be completed.
“Businesses such as Decatur add unprecedented economies of scale and integration to our PET business and supports the growing need of our customers as well as that of our shareholders alike. As we build our scale in North America, we will continue to strive to be the supplier of choice for our customers and drive our growth trajectory as a world-class chemical company,” said Aloke Lohia, group CEO of IVL.
He said the acquisition brings the company competitive feedstock security with scale advantages, technology ownership and innovative products.
The acquisition of the Decatur Paraxylene, PTA and NDC assets coincide with United States International Trade Commission’s affirmative vote to apply anti subsidy and anti-dumping duties on PET resin imports from China, Canada, India and Oman.