Thailand-based polyester producer Indorama Ventures PCL (IVL) has agreed to acquire United
States-based Old World Industries I Ltd. and Old World Transportation Ltd. for $795 million.
Old World is a leading producer of ethylene oxide (EO)/ethylene glycol (EG) and its
derivative products including purified ethylene oxide, monoethylene glycol (MEG), diethylene
glycocl and triethylene glycol. The company’s EO/EG production facility is the largest in the
United States, with crude EO capacity totaling 435,000 tons per year.
The acquisition gives IVL access to MEG production capability. MEG is one of the primary
components used to manufacture polyethylene terephthalate (PET) resins and polyester fibers and
yarns, both of which are produced by IVL. The company reports an increasing demand for polyester
fibers and PET resins used in textiles, home furnishings, industrial products, hygiene products and
packaging material for food and beverages. Old World’s MEG production capacity totals 358,000 tons
per year.
VL’s acquisition of Old World follows numerous significant acquisitions over the last year —
most recently, United States-based polyolefin staple fiber producer FiberVisions Holdings LLC,
which, through its joint venture ES FiberVisions, also produces bicomponent fibers (See ”
Indorama
Acquires FiberVisions Holdings,” www.
TextileWorldAsia.com, Jan. 18, 2012).
The transaction is expected to close in the first quarter of 2012.
February 14, 2012