Indorama Ventures Public Company Limited (IVL) has reported a 21% year-on-year decline in first-half 2025 Adjusted EBITDA to $606 million, as global chemical markets continue to face macro-economic pressures, including new Chinese supply and geopolitical disruptions. Sales volumes fell 8% due to planned maintenance and weather-related shutdowns in the US.

Despite the downturn, the company has pressed ahead with its three-year IVL 2.0 transformation programme, aimed at optimising operations, cutting fixed costs, and generating cash. In 1H25, fixed costs were reduced by $51 million, while operating cash flow reached $618 million, representing 111% EBITDA conversion.

The second quarter saw a 2% quarter-on-quarter revenue increase and a 20% improvement in Adjusted EBITDA, driven by stronger performance in the Combined PET business. Segment highlights included a 12% EBITDA increase in Integrated PET from asset optimisation, a 21% gain in Fibres, and steady performance in packaging, while Indovinya recorded a slight decline due to higher input costs in its Essentials business.

Over the past year, IVL has closed facilities in Portugal, the Netherlands, Australia and Canada, generating $116 million in annualised fixed-cost savings, with a target of $170–190 million by 2027. The company also expects $190–200 million in cash proceeds from property sales by 2026. Digital transformation has advanced with the rollout of SAP S/4HANA and the integration of AI-driven solutions for manufacturing and maintenance.

Liquidity remains strong at $1.8 billion, with long-term refinancing of $1.5 billion secured in 1H25. Growth initiatives include acquiring a 24.9% stake in EPL, launching high-value polymer products, and expanding recycling capacity. Notably, IVL has now recycled 150 billion PET bottles since 2011, with the last 50 billion processed in just 2.5 years.

www.indoramaventures.com