Indorama planning $5.9 billion in capital spending

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Bangkok-based polyester manufacturer Indorama Ventures Public Co. Ltd. plans to invest about $5.9 billion over 2014-2018 in capital projects. IVL expects the projects to result in 15 million tons of new product capacity.

IVL said in its latest quarterly report that capital expenditures would be financed through a mix of earnings, debt and warrants.

Product volume for 2014 was projected at 6.5 million tons, up 12 percent from last year’s 5.8 million tons — with some of that increased due to more demand for recycled PET. IVL produced 3.1 million tons of products in the first half of this year, up 8 percent compared to the same period in 2013.

IVL said its core net profit for the first half of this year soared by 158 percent to 2.8 billion baht ($87.9 million from 1.1 billion a year ago. Sales for the same period have increased 12 percent to 125.7 billion baht. The increase has been driven by volume growth in all business segments, despite lower prices, the company announced.

The company said it has benefited from volume growth in value-added products and various debottlenecking and expansion projects.

Recycled PET is a growing market for the company, including in North America.

“This capability is now extended to our Mexican operations. With the startup of [a] recycling facility in Thailand, producing recycled resins and flakes, recycled products are now available from Asia as well,” IVL said.