Indorama moves to reinforce market position in country, neighbouring states
Indorama Ventures (IVL) a world-class fully integrated polyester and yarn manufacturer, has acquired another PET plant in Turkey to complement its first, 51-per-cent-owned polyester and PET plant called Polyester Sanayi A in the same area.
Through the combined forces of these two latest foreign investments, IVL hopes to reinforce its market position in Turkey and neighbouring countries.
CEO Aloke Lohia, said IVL’s new, wholly-owned Artenius TurkPET plant, with production capacity of 130,000 tonnes of polyethylene terephthalate a year, is located in Adana in the southern region.
The move was part of IVL’s strive to seek investments in profitable business that will yield excellent returns for its shareholders.
IVL sees rapid growth in Turkey and neighbouring countries and expects a higher-than-average return on investment from Artenius TurkPET, which should further reinforce the company’s competitive position, he said.
IVL will continue to invest in the region around Turkey, which offers an attractive growth opportunity as well as 76 million consumers, similar to the Thai market, which IVL has been successful in, Lohia added.
The demand for PET is high in Turkey in line with its growing economy. Turkey’s geographical position is not far from central Asia, the Middle East, North Africa and southern Europe, accessible by land and sea.
IVL sees Turkey as a vital market offering a geographical edge to support demand from Europe, Asia and the Middle East.
IVL’s entry in Turkey reflects its diverse logistics strategy and vertical and horizontal market integration strategy, which should allow IVL to cater to its clients – leading consumer goods manu-facturers – with a combination of commodity goods and value-added yarn products amid a low production cost operating environment situated not far from both developing and developed, mature markets, he said.