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Industry Talk

Indorama Ventures expands into Turkey

According to the leading vertically integrated polyester value chain producer, Turkey is an attractive market with a high PET demand growth, which location also provides ease of access to Central Asia, Middle East, North Africa and Southern Europe. The company is expanding its activities into the region as it announces the acquisition of Artenius TurkPET, Turkish PET resin producer.

4th June 2014

Knitting Industry
 |  Bangkok

Knitwear, Technical Textiles

Indorama Ventures (IVL), the leading vertically integrated polyester value chain producer, has acquired Artenius TurkPET, the PET resin producer based in Adana, Turkey.

“Our thrust continues to be to shape the businesses of IVL to grow profitably and to deliver attractive returns to our shareholders across cycles,” commented Group CEO Aloke Lohia. “Indorama leadership in the PET value chain will provide significant synergies to TurkPET in order to deliver above average returns.”

“Turkey and its encompassing region is a fast-growing market and our investments in Turkey are part of a well-defined strategy to bolster our global leadership and competitive advantage. We expect to make further follow-on investments in this thriving economy of 76 million consumers to replicate what we have built in Thailand as we see a similar opportunity to fully leverage on all our products portfolios.”

Expanding sales

Turkey is an attractive market with a deeply urbanised economy enjoying high PET demand growth, the company reports. Its Eurasian location provides ease of access to Central Asia, Middle East, North Africa and Southern Europe via excellent land and sea infrastructure.

“We are impressed by the quality of the present management team at Artenius TurkPET and together we will be looking to expand sales into this new geographical area to better serve the domestic and regional markets. Our domestic presence in key large markets helps us to grow with our global brand clients in that region,” Lohia said.

Key market

The acquisition of Artenius Turkpet comes after the company has announced that Indorama Ventures will acquire 51% of Istanbul listed Polyester Sanayi A.Åž (SASA). Both SASA and Artenius Turkpet are situated adjacent to each other and this is expected to lend further synergies to the deals.

“Indorama Ventures is looking to Turkey as a key market for serving Europe and the near Asia-Middle East markets. Our strategy of geographic diversity combined with vertical integration and horizontal expansion into high value-added (HVA) goods is epitomised by our Turkish entry as we can now serve our globally-branded fast-moving consumer goods customers with an integrated polymer commodity and fibre HVA portfolio in a relatively low-cost environment that is ideally situated to serve developing and mature markets on its doorstep,” Lohia concluded.

www.indorama.com

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