Indorama Ventures acquires Wellman international's recycling and fiber manufacturing business in Europe, including 80,000 tons/year plant in Ireland, 45,000 tons/year recycling facilities in Netherlands, 28,000 tones/year site in France
September 23, 2011
The Stock Exchange of Thailand
Subject: Acquisition of Wellman International’s Recycling and Fiber Manufacturing Business.
Indorama Ventures Public Company Limited (“IVL”) would like to announce that a definitive share purchase agreement has been signed on 20th September 2011 with WIT Beteiligungs GmbH and Wellman International Trading, affiliates of Aurelius AG (“Seller”), to acquire 100% stake in the recycle and fiber manufacturing businesses of Wellman International in Europe.
The acquisition is expected to be completed within 2011 subject to necessary regulatory approvals.
The Business has three production facilities in Europe: a polyester fiber plant based in Mullagh, the Republic of Ireland, with an output of more than 80,000 tons, and recycling plants
at Spijk in the Netherlands, with an output of 45,000 tons, and Verdun in France, with an output of 28,000 tons. The plant in Ireland is capable of converting waste polyester into 100% recycled fiber. Post consumer recycled Bottles are flaked and processed with other waste material to produce fibers that can be used in a variety of premium applications, such as in the
The target acquisition has the know-how to blend recycled PET (rPET) and industrial waste and will potentially contribute to make Indorama Ventures a ‘zero waste’ company” with a low
carbon footprint. The acquisition will be in line with customers’ sustainability drive and to meet their demands for more recycling of post consumer products. This project acquisition will also
provide access to proven recycling technology and the potential for a technology transfer to the Company’s Asian assets with a reduced learning curve.
The value of the above combined acquisition, calculated in accordance with the regulation of the Capital Market Supervisory Board and the Stock Exchange of Thailand, is less than 15
percent as prescribed by the regulation of the Stock Exchange of Thailand Re: Disclosure of Information and Other Acts of Listed Companies Concerning the Acquisition and Disposition
of Assets, 2004 (as amended).
We will update on completion of the transaction together with its structure.
Please be informed accordingly.
(Mr. Souvik Roy Chowdhury)