BANGKOK, Thailand — September 21, 2011 — Indorama Ventures Public Company Limited, the world’s
leading vertically integrated Polyester Value Chain producer, has signed an agreement to acquire
Wellman International’s recycling business in Europe from AURELIUS AG, to pursue customers’
sustainability needs and meet the demands of consumers for more recycling of post consumer
products.
The Company’s Board of Directors approved a management proposal to acquire from AURELIUS AG
the businesses of Wellman International Limited and its related company, MJR Recycling BV as this
will be strategically in line with the Company’s objectives of long-term sustainability and an
overall lowering of the Company’s impact on the environment globally.
The acquisition is expected to be completed within 2011, subject to necessary regulatory
approvals, and will provide access to proven recycling technology and the potential for a
technology transfer to the Company’s Asian assets with a reduced learning curve.
“This is a very exciting project for us,” said Group CEO Mr. Aloke Lohia. “The target
acquisition has the know-how to blend recycled PET (rPET) and industrial waste and will potentially
contribute to make Indorama Ventures a ‘zero waste’ company with a low carbon footprint able to
serve both the beverage and fiber segments of our customer base.”
Wellman International is Europe’s largest recycler of PET (polyethylene terephthalate)
bottles as well as a leading European producer of polyester staple fibre products and rPET. It
enjoys a unique position in that Europe’s market environment highly values recycled and green
products. It is a pioneer in recycling and most reputed bottle-to-bottle and bottle-to-fiber
recycler with its own unique technology, capable of producing very high quality materials, such as
for the hygiene sector.
Wellman International has three production facilities in Europe with over 153,000 tons of
output each year: a polyester fiber plant based in Mullagh, the Republic of Ireland and recycling
plants at Spijk in the Netherlands and Verdun in France. The plant in Ireland is capable of
converting waste polyester into 100% recycled fiber. Post Recycled Bottles (PCB) are flaked and
processed with other waste material to produce bottles and fibers that can be used in a variety of
premium applications.
“The project will act as a springboard to launch IVL into rPET following our ongoing
construction of recycling plants in Decatur, USA and Rayong, Thailand,” Lohia said. “As this is the
largest recycling capacity in the whole of Europe we will have both economies of scale and lower
production costs to serve our customers in both the bottle and fiber segments. We will be able to
meet our customer expectations to assist them achieve their sustainability goals effectively
throughout the continent. With a comprehensive European network for bottle sourcing and good supply
chain efficiencies, we feel that it will contribute as an attractive platform for strong future
growth in the sustainable recycling business with the potential to expand this business further
around the world.”
Posted October 19, 2011
Source: Indorama Ventures