Indorama Acquires M&G Fibras Brasil

Seven months after agreeing to buy M&G’s PET plant in Brazil, Indorama Ventures (IVL) is expanding in the country again through the acquisition of M&G Fibras Brasil.

Based in Cabo de Santo Agostinho, the Brazilian company, which is part of the bankrupt M&G Group, operates a polyester staple fiber plant with a total polymerization capacity of 75,000 t/y. The plant is located close to IVL’s PET site as well as a third-party PTA site. Further synergies will be realized by using a jointly located commercial office in Sao Paolo.

IVL said the deal fills an important gap in its global fibers footprint while also offering the opportunity to participate in the domestic market, where demand for nonwoven applications is growing strongly, along with benefitting from the advantages of free trade agreements with other Latin American countries.

“Brazil, with its large spinning industry is a natural place for the textile industry to enjoy long-term growth due to its location and large population. We intend to support the local spinning industry with a commitment to supply high-quality fibers to blend with cotton and reduce dependence on imports,” said Aloke Lohia, group CEO of IVL.

The transaction is expected to close in the fourth quarter, subject to regulatory approvals.

The Thai group has been beefing up its PET/PTA business in recent years, with a string of acquisitions in Portugal, Spain, Austria, USA and Mexico.

In separate news, IVL completed its purchase of Europe’s leading tire cord producer, Kordárna Plus on Oct. 31. The company has 786 employees and operates two production sites in Slovakia and the Czech Republic, which are strategically located in the hub of Europe’s car and tire manufacturing industry.

Lohia said this acquisition is another demonstration of its aspiration to become a world-scale supplier to the automotive industry.