Thai polyester producer Indorama Ventures (IVL), the world market leader, and Dhunseri Petrochem have agreed to form a 50:50 joint venture to produce and sell PET polymer in the Indian and export markets.

Kolkata-based Dhunseri will buy a 50% share of Micro Polypet’s 216 000 t/y PET plant at Panipat, Haryana, which is owned by IVL. In turn, IVL will take a 50% stake in Dhunseri’s 480,000 t/y PET unit in Haldia, West Bengal.

The transactions and joint venture are expected to be completed in the second half of this year, subject to regulatory approvals. The new company will account for about 38% of Indian PET capacity.

IVL said the venture will optimize its freight network in both the domestic and export markets, as well as enhancing its efficiency in procuring raw materials through bulk negotiations. The company added that the venture had strong synergy potential and multiple avenues for future growth.