Bangkok--13 May--Indorama Ventures
Indorama Ventures Public Company Limited (IVL), Thailand’s largest polyester company and the second largest PET company in the world, announced that it has achieved first quarter 2010 net sales of Baht 24,100 million, growth of 37% over the same period in 2009, despite the poor global economy and the strengthening of the Thai Baht. EBITDA was Baht 3,010 million, 7% higher than Q1 2009, while net profit rose 43% to Baht 1,583 million. Sales in all divisions grew due to the rising volumes and prices of PET, Polyester and PTA. The Return on Equity (ROE) now stands at 30.8% in the first quarter.
PET sales in particular grew 42% over the first quarter of 2009 because of rising sales in general and new sales from the company’s latest high-technology plant in the USA, AlphaPet. The conversion of a line at Thailand’s Indorama Polyester Industries (IPI) from Polyester fibers to PET also began to make a higher contribution. Though the Polyester fibers and yarns capacity at IPI was decreased due to the conversion of one line to PET, overall sales for the division grew 83% over the first quarter of 2009. PTA merchant sales, that is, sales not made to the IVL group, grew 13%. Approximately half of the company’s PTA is consumed internally for PET and Polyester fibers and yarns.
Mr. Aloke Lohia, founder and Group CEO of Indorama Ventures said, “The results for the first quarter are inline with the growth forecast by the company in recent investor roadshows. The IVL Board has further approved additional new brownfield capacity at the site of our Rotterdam plant that will make this the most competitive facility in our group as we are able to leverage the existing infrastructure. We have already acquired the utilities assets at this site which will cater to the expansion and we will be able to utilize the surplus PTA produced at the current site and thus benefit from related freight costs. The site benefits from a competent workforce and business leadership team.
“Europe today has a net deficit of PET resin and this timely expansion will help overcome the shortage on the continent,” Mr. Lohia noted. “Our target is to have production in place by the first quarter of 2012.”
Recently, IVL announced that it was entering into a 50% joint venture with PCH Holdings to acquire PET and PTA assets in Italy and has also acquired 100% of a co-located 24MW power and utilities plant at its site in Rotterdam. The company is pushing forward its value accretive growth strategy such as the expansion of its Rotterdam plant, which will add one more PET production line of 190,000 tons per year capacity.
Issued by : Indorama Ventures Public Company Limited
For further information : Richard Jones
Indorama Ventures Public Company Limited
Tel. 0 2661 6661 ext. 680
Email:
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