Indorama Ventures to acquire PTA producer Artlant in Portugal
Thailand-based chemical producer Indorama Ventures (IVL) is set to acquire the assets of purified terephthalic acid (PTA) producer Artlant, including all equipment, surface rights, and employment contracts.
Artlant is one of the largest PTA producing plants in Europe with a production capacity of 700,000tpa. It is situated in the Sines Industrial Complex in Portugal.
Indorama Ventures Group CEO Aloke Lohia said: “Artlant fortifies our core PTA business and is a part of our successful vertical integration strategy.
“We can apply our scale and operational expertise while taking advantage of cost synergies and capture the opportunity for future growth and expansion.
“We are confident that Artlant will drive the growth of the polyester business both in Portugal and the rest of Europe. It will support employment opportunities in the region, and help economic growth.”
PTA is used as a raw material in the production of PET (Polyester) which is used to make plastic bottles.
The acquisition, expected to be completed by the end of this year, will support IVL’s strategy to grow its core businesses as well as support in the expansion of its portfolio.
The company also estimates that the deal will reduce cost and improve operational synergies through the internal supply of feedstock and replace imports in Europe.
Along with this deal, IVL will also acquire all the assets of Artelia Ambiente which supplies power and other utilities to the Artlant plant.
The acquisition will secure energy supply to Artlant as well as allow IVL to sell excess power to the grid.
Last month, IVL completed the acquisition of DuraFiber Technologies México Operations that produces durable technical textiles for industrial and other specialty applications.