Bangkok--19 Jan--Indorama Polymers PCL
Having operated businesses under various entities internationally, the Lohia family, known in Thailand as being the promoters of Indorama Polymers PCL which is a listed company on the Stock Exchange of Thailand has made a strategic decision to reorganize the polyester value chain assets owned by the family under a single umbrella — Indorama Ventures Limited.
“The decision to create Indorama Ventures Limited as a holding company for synergistic assets was undertaken in order to enhance collaboration between operating entities to unlock as well as create potential value as a result of their collective size and strength. This move also helps us maintain and reaffirm our focus and commitment to the Polyester segment” Aloke Lohia, CEO of Indorama Ventures Limited says.
The move to integrate the family’s polyester value chain assets under a single roof has today created a company that is expected to generate over US$ 3 billion in revenues this year with operating units spanning across Asia, Europe and North America.
“We embarked on the journey to consolidate our polyester chain assets under a single entity in June 2008 and have now successfully concluded the reorganization in the shortest possible time frame. Although this was no easy task, we believe that the sooner we are able to do this, the sooner we can start creating added stakeholder value”.
Indorama Ventures Limited has organized under it 4 business verticals, namely PET resins, Polyester Intermediates (PTA), Polyester Fibers & Yarns and Woolen yarns with the latter contributing only 2 percent of the company’s revenues.
The PET resin business is organized under Indorama Polymers PCL and has 8 operating units located in Thailand, Netherlands, U.K., Lithuania and the United States with a combined capacity to produce 1.7 million tons of PET Polymers in 2009 after the start up of AlphaPET, USA during the 1st half of 2009 making it the 2nd largest producer of PET Polymers in the world.
The Polyester Intermediates (PTA) businesses were acquired by Indorama Ventures in 2008 and have operating units in Thailand and Netherlands. After the acquisition of 50.60 percent of the equity in Tuntex Petrochemicals (Thailand) from Bangkok Bank PCL, Indorama Ventures has an installed capacity to produce 1.6 million tons of PTA annually.
The Polyester fibers and yarns and the woolen yarns businesses are located in Thailand and have 2 operating units each. Subsequent to the acquisition of Tuntex Textiles PCL in 2008, Indorama Ventures Limited is now the largest producer of polyester fibers and yarns in Thailand with a focus on producing specialty products to cater to various niche segments.
The birth of Indorama Ventures Limited has created a global polyester chain powerhouse and the key recipe for the company to maintain and enhance its track record of success is to create a concerted effort amongst the various businesses to enhance value and further lower costs amongst units that are already among the lowest cost producers in the world in each of their businesses.
“With all these operations under the flagship of Indorama Ventures Limited, there are various common platforms that can be used to improve overall efficiency and costs such as Information Technology, Logistics, raw material purchases and also the duplication of common expenses by individual operating companies.”
Mr. Lohia says that “Indorama Ventures Limited is among a select few companies in the world with such a singular and sizeable presence in the polyester value chain, which enables us to maintain our focus and dedication to a business which has phenomenal long-term potential and has shown consistently outstanding growth year on year. The polyester segment has shown great resilience to economic downturns due to the very nature of the products we make and our customer segments”.
The customers for polyesters (resins and textiles) generally comprise of the resilient fast moving consumer goods (FMCG) sector and the product application is in non-discretionary expenditure items such as food and beverage packaging and basic clothing.
Indorama Ventures Limited is an unlisted Thai company promoted by the Lohia family with minority interest held by the German development bank — Deutsche Investitions und Entwicklungsgesellschaft GmbH (DEG) and Bangkok Bank PCL.
More Information Please Contact
Thosathorn Kruthanawat 081-445-3443