A subsidiary of Thailand-based chemicals, fibres and woollen yarns conglomerate Indorama Ventures Group Ltd (IVL) has inked an agreement to acquire an integrated purified terephthalic acid (PTA), polyethylene perephthalate resin (PET) plant currently under construction in Corpus Christi, Texas, from M&G USA Corp.
Corpus Christi Polymers LLC (CC Polymers) – a newly-formed joint venture between Indorama Ventures Holdings, Alpek SAB de CV – a business group of Alfa SAB de CV – one of Mexico’s largest global industrial companies, and Far Eastern Investment Ltd, enter into an asset purchase agreement whereby CC Polymers will acquire the plant, certain M&G intellectual property, and a desalination/boiler plant providing water and steam needs to the Corpus Christi Project.
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The purchase agreement provides M&G with a binding bid of US$1.13bn in cash and other capital contributions.
The Corpus Christi Project is an integrated PTA-PET plant currently under development that, when completed, will have nominal capacity of 1.1m and 1.3m metric tonnes per year of PET and PTA, respectively. The plant is expected to be the largest single line vertically integrated PTA-PET production facility in the world and the largest PTA plant in the Americas.
Pursuant to the terms of the newly formed joint venture Alpek, Indorama, and Far Eastern will have the right to receive one-third of the capacity of PTA and PET produced at the Corpus Christi Project upon completion. Each party will independently procure its raw materials and will independently sell and distribute their corresponding PTA and PET.
The closing of the transaction is subject to conditions precedent including approval by the bankruptcy court and applicable governmental authorities.
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By GlobalDataEarlier this month, IVL announced it is to acquire the assets of M&G Polimeros Brazil, strengthening its position in the polyethylene perephthalate resin (PET) market.
Indorama strengthens PET position with Brazil buy
