Chemical producer Indorama Ventures (IV) has announced that it has made an agreement to acquire Invista Resins & Fibres GmbH, which owns a PET manufacturing facility in Gersthofen, Germany.
The facility has a combined capacity of 282,000 tonnes per annum and employs 140 people, with the transaction expected to be completed in the first quarter of 2019, subject to regulatory approvals.
According to IV, Invista is a strong fit with the firm and is aligned with its strategy to grow and support customer’s needs with various solutions in both packaging and industrial fibres.
IV will own the intellectual property rights of Invista’s barrier technology, POLYSHIELD PET and OXYCLER Barrier PET, in all markets globally.
Together with IV’s HVA polymer business in America, the acquisition will open new opportunities in several new markets, said IV.
PET packaging with an oxygen barrier is mainly used by the food and beverage sector to protect oxygen-sensitive items, such as wine, beer and dairy.
The demand for barrier resins is expected to grow at a strong pace and will be driven by the improved shelf life of packaging food products, the increasing health concerns and the emergence of new recyclable PET applications over other materials such as glass and aluminium cans.
IV group chief executive Aloke Lohia said: “This is very exciting development for IVL. With our strong foundation in the PET market and IVL’s geographic reach, we see vast opportunities to grow the POLYSHIELD PET and OXYCLEAR Barrier PET brands to their full potential, and reach existing and new customers around the world.
“We are already capitalizing on the opportunities in the U.S. market, one of the largest barrier resins markets in the world – through our existing OXYCLEAR Barrier PET license in America’s.
“This strategic acquisition will evolve IVL to the next level of success by taking advantage of opportunities in global markets. With this acquisition, we reinforce our commitment to deliver the highest value to our customers and create sustainable long-term value for our shareholders.”