Indorama Ventures Public Co. Ltd. (IVL), has entered into an agreement to acquire M&G Polimeros Brazil SA in Ipojuca Brazil for an undisclosed amount.
In a March 16 statement, Bangkok-based IVL said the plant is the largest PET facility in Brazil, with capacity of 550,000 metric tons per year.
According to IVL, the plant is strategically located and benefits from virtual integration with a manufacturer of purified terephthalic acid (PTA), a key feedstock to PET.
The transaction is expected to be completed in second quarter of 2018, subject to regulatory approvals.
The acquisition in Brazil follows a series of takeovers and investment in recent months by IVL, which claims to be the world's No. 1 PET player.
M&G parent M&G Group of Italy and U.S. unit M&G Polymers USA of Houston both filed for bankruptcy in October. M&G in February sold a PET plant in West Virginia and an R&D center in Ohio to Taiwanese materials firm Far East New Century Corp.
Indorama was a supplier of raw materials to M&G and is owed almost $60 million, according to court documents. M&G also is seeking a buyer for its massive unfinished PET facility in Corpus Christi, Texas. Cost overruns on the Corpus Christi project played a major role in M&G's bankruptcy filing.
IVL has set a growth strategy focusing on expanding its global footprint in key markets with high growth potential.
South America is an important emerging market with domestic demand for PET growing at around 5 percent, according to IVL.
"Today's per capita consumption of PET [in Brazil] is comparatively low at 2.8 kilograms and has great potential for growth," the company added.
Commenting on the acquisition, Aloke Lohia, group CEO of Indorama Ventures, said the company "now has unrivaled scale and global reach, being present in five continents."
"We look forward to capitalizing on this new market and opportunities for cross-selling to immediately deliver greater value to existing and new customers, while delivering profitable growth and enhanced shareholder value," he added.