Indorama sign deal to expand PET recycling business

By Mark Astley

- Last updated on GMT

Related tags Recycling Polyethylene terephthalate

Indorama sign deal to expand PET recycling business
In order to meet increasing post-consumer recycling demands, Indorama Ventures (IVL) is set to buy Wellman International’s polyethylene terephthalate (PET) recycling business in Europe.

Indorama, which is the largest PET producer in the world, took the step to acquire the 100% stake in the recycling and fibre manufacturing business to develop the recycled PET (rPET) side of the business.

The takeover, the value of which was not disclosed, is expected to be completed by the end of the year, pending regulatory approval.

Wellman International has three plants in Europe, with a combined yearly output of over 153,000 tonnes: a polyester fibre plant in Ireland, and two recycling plants in the Netherlands and France.

Indorama hopes the acquisition will give them access to proven recycling technology, allow them to gain from technology knowledge transfer and also reduce their environmental footprint.

Indorama CEO Aloke Lohia said, “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.”

Indorama’s product portfolio, which includes both PET food and beverage packaging, could benefit from the lower costs that the acquisition could bring.

Aloke Lohia added, “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.”

“The target acquisition has the know-how to blend 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.”

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