Old World deal helps Indorama on feedstock integration

By Gurdip Singh
Correspondent

Published: February 7, 2012 6:00 am ET

Related to this story

Topics Materials, Mergers & Acquisitions, Suppliers

BANGKOK (Feb. 7, 1:30 p.m. ET) — Thailand’s Indorama Ventures Public Co. Ltd. plans to acquire Old World Industries I Ltd. and Old World Transportation Ltd., a U.S.-based ethylene oxide and ethylene glycol producer, for $795 million.

Old World makes automotive antifreeze, but mono ethylene glycol is also a key component in purified terephthalic acid, a feedstock for PET resins.

The deal is scheduled to be completed in the first quarter of this year, according to Bangkok-based IVL.

IVL has already integrated into PTA in Europe and Asia and virtually integrated in the USA via co-location with a PTA supplier in Alabama.

“I am delighted that we were able to acquire Old World in the USA as it represents a rare opportunity to integrate into MEG in the most competitive zone for feedstock availability,” said Aloke Lohia, group CEO of Indorama Ventures Public Co. Ltd.

“Competitiveness of petrochemicals in the USA has been bolstered because of the favorable gas price, relative to oil, due to the abundance of shale gas. By entering MEG now, IVL will be able to capture the premium margins that are expected to remain firm for the next 4-5 years when new capacities are likely to enter the market.”

The acquisition makes IVL the only global player in polyester with integration into both PTA and MEG, he said.

Old World is located in Clear Lake, Texas, near Houston.

The deal was being financed in part by new credit facilities granted by Siam Commercial Bank and cash available with IVL from earlier fund raising activities, said IVL.

Evercore Partners and HSBC were financial advisors to IVL and Allen & Overy acted as legal advisors. The Company received market and technical due diligence by CMAI, ERM and Jacobs.

William Blair were financial advisors to Old World and Bracewell & Giuliani advised Old World.


Comments

Old World deal helps Indorama on feedstock integration

By Gurdip Singh
Correspondent

Published: February 7, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Xten may shut down, working on sale to Commercial Plastics

October 29, 2014 5:49 pm ET

Xten Industries LLC is working on a sale to Commercial Plastics Co. of Mundelein, Ill. Xten, an injection molder based in Kenosha, Wis., filed a...    More

Image

Ineos closing Barex plant, exiting business

October 29, 2014 3:58 pm ET

Materials maker Ineos Group is closing its only global Barex-brand polyacrylonitrile (PAN) resin plant in Lima, Ohio. Ineos – based in Rolle,...    More

Image

Five-axis flexibility paying off for Sepro and its customers

October 29, 2014 1:47 pm ET

French robot maker Sepro Robotique expects to generate 78 million euros ($99 million) in 2014 sales — 17 percent more than 2013 — as...    More

Image

DSM picks Augusta, Ga., for nylon plant

October 29, 2014 11:49 am ET

Materials firm Royal DSM NV has chosen Augusta, Ga., as the site of its new North American nylon resin plant.    More

Image

Teknor Apex expands production of recycled nylon to Europe

October 29, 2014 10:12 am ET

Materials firm Teknor Apex Co. is making its recycled nylon compounds available in Europe for the first time.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events