The chemical company Indorama Ventures Public Co. Ltd. (IVL), Bangkok/Thailand, has entered into an agreement to acquire M&G Fibras Brasil, Cabo de Santo Agostinho/Brazil. The Cabo plant manufactures and supplies polyester staple fiber, with total polymerization capacity of 75,000 tons/year.
The transaction is expected to be completed in the Q4/2018, subject to regulatory approvals.
This acquisition fills an important gap in IVL’s global footprint in fibers by establishing capacity in South America’s largest economy, Brazil. It also offers IVL an opportunity to participate in the domestic market along with strategic and logistic advantages from established free trade agreements with other Latin America countries. The demand in Brazil is expected to grow in response to a recent recovery in consumption.
The plant is in close proximity to IVL’s PET site and also the 3rd party PTA site in Brazil.