Indorama Ventures Public Company Limited has recently declared that the Board of Directors have approved to enter into an equal Joint Venture partnership with Dhunseri Petrochem Limited, a non-related entity in India to manufacture and sell PET resins for the Indian domestic market and for exports. Under this partnership arrangement, IVL will divest 50% equity stake in its indirect, fully-owned PET manufacturing company – Micro Polypet Private Limited, India, to Dhunseri Petrochem Limited.
IVL will also acquire a 50% equity stake in a new carved-out entity from Dhunseri Petrochem Limited. The new entity will own the 480,000 metric ton PET manufacturing facility of Dhunseri Petrochem Limited located at the port city of Haldia in the Eastern Indian state of West Bengal.
The joint venture partnership is expected to gain synergy benefits as the sole producer of PET resin in North and East India and with both sites being virtually integrated with third party PTA feedstock suppliers. The transaction is expected to be completed in the second half of 2016 subject to regulatory approvals.