Indorama Ventures’ (IVL, Bangkok / Thailand; www.indoramaventures.com) global PET purchasing spree continues. After entering the high-growth Indian market with its recent acquisition of Micro Polypet (MicroPet; see Plasteurope.com of 05.01.2016), the market leader is now proceeding to carve out a leading role for itself on the subcontinent. It is doing so by setting up a new 50:50 PET joint venture with Dhunseri Petrochem & Tea (Haldia / India; http://dhunseritea.com), which operates a 480,000 t/y plant in Haldia, West Bengal, on India’s easternmost edge, near its border with Bangladesh.

Under the terms of the deal, which still has to meet regulatory approval but is expected to be wrapped up in H2 this year, IVL will divest a 50% equity stake in MicroPet to Dhunseri, and will in turn acquire a 50% stake in a new entity the latter will carve out, which will own the Haldia PET plant. MicroPet’s 216,000 t/y plant is located in Panipat, in the northern Indian state of Haryana.

IVL said the jv is a “win-win” for both participants, with a combined 700,000 t/y of PET capacity in a market seeing strong growth. The joint venture will be the only PET resin producer in northern and eastern India, and thanks to proximity to feedstock suppliers will also be effectively integrated into PTA. “IVL’s global market reach and high utilisation rates are expected to supplement Haldia’s location benefit at eastern India’s largest port while MicroPet enjoys a strong location advantage in the high-demand territory of North India,” the company said. The combined company would account for 38% of total Indian PET capacity, and thanks to the plant in Haldia, located at the coastline, would be able to export its output, too.