Indorama’s New R-PET Project in Thailand Picks Up Steam with the Board’s Approval of Assets Purchase

The world’s leader in the production of recycled polyethylene terephthalate (R-PET) and fibres, Thailand-based Indorama Ventures Public Company Limited (IVL), is all set to take further its proposed R-PET project in Thailand after gaining the board of Director’s approval for the acquisition of assets transaction from Aurus Speciality to purchase land, buildings, utility machinery for a total of USD 3.35 million.

The transaction of assets, which are to be acquired by the direct subsidiaries of IVL i.e., Indorama Holdings and Indorama Polyester Industries, is anticipated to reach completion by the end of the first quarter of 2022. The planned project is will be housing a preform manufacturing unit as well as a solar power facility to facilitate sustainable recycling plant operations. Indorama Ventures has been in full expansion lately with a series of R-PET manufacturing companies’ acquisitions and commissioning of new plant facilities, in order to reach a milestone recycling capacity of 750,000 tonnes per year by 2025.

Beverage bottles are typically made up of PET, which is a thermoplastic resin built from repeated units of ethylene terephthalate monomers, which are derived from ethylene, the fundamental petrochemical feedstock. PET is recyclable to a similar grade called R-PET which can be reused for manufacturing bottles, containers, and other commodity packaging materials.

As per ChemAnalyst, Indorama is taking bigger strides towards the expansion of its R-PET product business with regular investments in new plants in Asia. The planned Thailand R-PET project is going to be the new jewel in the company’s crown as it will add to the company’s total installed R-PET capacities, leading to enhanced annual output and growth in the annual profit. The new capacity will cater consistent supplies to the end-user industry where the demand for R-PET as a sustainable packaging solution is on a roll and is expected to grow with a healthy CAGR of over 4%. The surplus volumes will promote the exports of the company, simultaneous strengthening its competitiveness in the global market. In view of the above, the prices of R-PET which tends to remain at the higher side in comparison to its pristine counterpart may reduce to a certain level.