Thailand based chemicals, fibres and woollen yarns conglomerate Indorama Ventures Group Ltd (IVL) is to acquire the assets of Portugal's Artlant, strengthening its position in the European Purified Terephthalic Acid (PTA) market.

Indorama's acquisition includes all equipment, surface rights and employment contracts. Artlant, a PTA plant in the Sines Industrial Complex in Portugal, is a large PTA producer in Europe with a production capacity of 700,000 tonnes per annum.

The deal will add substantial scale and enhance Indorama's PTA leadership in Europe. PTA is used as raw material for polyester (PET) production. With the company's plan to grow its core businesses in the future, this feedstock security will be a solid basis for portfolio expansion, the company says. Indorama expects to reduce cost and increase operational synergies via internal supply of feedstock and replace imports in Europe.

"Artlant fortifies our core PTA business and is a part of our successful vertical integration strategy," says Aloke Lohia, CEO of Indorama Ventures. "We can apply our scale and operational expertise while taking advantage of cost synergies and capture the opportunity for future growth and expansion.

"We are confident that Artlant will drive the growth of the polyester business both in Portugal and the rest of Europe. It will support employment opportunities in the region, and help economic growth. I look forward to closing the deal in the fourth quarter of 2017."

Indorama will also acquire the assets of adjacent utilities provider, Artelia Ambiente, S.A. (Artelia), which has a capacity of 40.390 MW of electricity, steam, demineralised water, wastewater treatment and hydrogen. The deal will secure energy supply to Artlant and allow it to sell excess power to the grid.