Indorama to construct PTA and PET plants in India
Indorama Ventures is planning to invest $700m to build purified terephthalic acid (PTA), polyethylene terephthalate (PET) and polyester staple fibre (PSF) plants in India.
Indorama plans to backward integrate into the Paraxylene facility of a third party to ensure a captive supply of its essential raw material while providing low-cost access. As part of the integration, it has signed a memorandum of understanding (MoU) with Indorama Synthetics (India) to enter into a joint venture (JV) that would construct and use the offtake of the plants.
PET is used in food and drinks packaging like bottles and PSF, which is a polyester alternative to natural fibres, allows the manufacturers of clothing and other soft products to produce low-cost items which are ideally suited to a large and growing population. PTA is the major raw material used in the production of both PET and PSF.
Indorama said after completion of all the formal negotiations, it will announce the details of the capacity and location.
Indorama Ventures Group CEO and founder Aloke Lohia said it is imperative that it was there to serve the customers and the emerging local producers who will be consuming more and more PET and PSF over the next decade. "We are looking at the long term double digit growth in demand for such products and feel this is the right time to move into the market," he added.
Indorama Ventures which has manufacturing units across Asia, Europe and North America, produces polyester and manufactures wool yarns. The company's products are widely used in food, beverages, personal and home care, healthcare, automotives, textile and industrial markets.