Global chemical producer Indorama Ventures Public (IVL) has signed an agreement to purchase Germany-based Invista Resins and Fibers.
The deal will add Invista’s Gersthofen value-added polyethylene terephthalate (PET) manufacturing facility to IVL’s portfolio and also supports the strategy to offer differentiated solutions in both packaging and industrial fibres.
The Gersthofen plant has a current annual production capacity of 282,000t and employs approximately 140 people.
IVL will also own intellectual property rights for Polyshield Pet and Oxyclear Barrier Pet brands used for oxygen packaging, as well as Invista’s technology across all global markets.
Indorama Ventures Group CEO Aloke Lohia said: “With our strong foundation in the PET market and IVL’s geographic reach, we see vast opportunities to grow the Polyshield Pet and Oxyclear Barrier Pet brands to their full potential, and reach existing and new customers around the world.
“We are already capitalising on the opportunities in the US market, one of the largest barrier resins markets in the world, through our existing Oxyclear Barrier Pet licence in America’s.
“This strategic acquisition will evolve IVL to the next level of success by taking advantage of opportunities in global markets. With this acquisition, we reinforce our commitment to deliver the highest value to our customers and create sustainable long-term value for our shareholders.”
The transaction is currently subject to regulatory approvals and will close in the first quarter of next year.
Following completion of the transaction, Invista’s Gersthofen plant will offer new opportunities in several new markets and segments for IVL.