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 US$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. Old World’s MEG production capacity totals 358,000 tons
per year. The transaction is expected to close in the first quarter of 2012.
In related company news, IVL recently purchased United States-based FiberVisions Holdings
LLC — a producer of specialty polyolefin staple fibers for nonwoven applications, and through its
joint venture (JV) ES FiberVisions, a producer of bicomponent fibers.
With manufacturing facilities located in the United States, Denmark, Argentina and China,
FiberVisions has a global production capacity totaling more than 200,000 tons per year. The company
devotes 75 percent of that capacity to the production of fibers for disposable branded feminine
hygiene products and 25 percent to fiber production for automotive and industrial applications.
FiberVisions also has a JV with Japan-based bicomponent fiber producer JNC.
”The acquisition of FiberVisions significantly enhances IVL’s position in the world’s most
specialized fibers business for hygiene products and other growing fiber applications,” said Aloke
Lohia, Group CEO, IVL. “As the largest producer of polypropylene staple fiber, FiberVisions
complements our strength as the world’s largest polyester producer and together we will increase
our ability to satisfy customer needs in all parts of the world.”
IVL’s acquisitions of Old World and FiberVisions follows several other notable acquisitions
over the past year including United States-based Invista’s U.S. and Mexican polyester assets;
Germany-based polyester fiber and filament producer Trevira GmbH, acquired through a JV with
Italy-based Sinterama S.p.A.; Ireland-based Wellman International Ltd.’s recycling and fiber
businesses in Europe; and South Korea-based SK Chemicals Co. Ltd.’s polyester assets in Indonesia
and Poland.
January/February/March 2012