Indorama Ventures signs metaxylene supply agreement with Cepsa
Thailand-based producer of intermediate petrochemicals Indorama Ventures (IVL) has entered a new agreement with Spanish multinational oil and gas company Compañía Española de Petróleos (Cepsa) to supply metaxylene on a long-term basis.
The new agreement would further strengthen the strategic partnership between the two companies.
The Spanish-based company uses metaxylene for the production of Isopthalic Acid (IPA), a chemical additive used in the manufacture of polyethylene terephthalate (PET), coatings and other resins.
Indorama Ventures Group CEO Aloke Lohia said: “This agreement will allow us to cater to our customers’ growing IPA needs globally, from a reliable production platform with proven technology and a competitive supply chain infrastructure.
“The global IPA market is growing at 5% per annum and it is our responsibility as a leader to support the growth effectively.”
Cepsa will be constructing a second unit for supplying metaxylene to IVL.
The new Sorbex unit will have a capacity up to 70,000mt per annum and is expected to be operational by 2018.
Cepsa will be supplying the entire production of metaxylene from the existing, as well as the new facility to Indorama Ventures’ co-located site, which is also integrated with Cepsa’s refinery in Spain.
In April, Indorama Ventures acquired Cespa’s vertically-integrated business of IPA, PTA and PET in Spain.
Indorama plans for further investments in this site to improve the capacity, reliability of supply and service of goods to customers in a competitive environment.