Indorama Ventures Public Company Limited (IVL), through its indirect subsidiary Indorama Ventures Brazil Participações SA (IVBRZ), has signed a definitive agreement with M&G Fibras Holding SA, M&G Fibras Participações Ltd, and M&G Fibrase Resinas Ltd to acquire a 100 per cent stake in M&G Fibras Brasil Ltda located in Cabo de Santo Agostinho, Brazil. The site produces polyester staple fibre, with an annual capacity of 75,000 tonne and will be in close proximity to IVL’s PET plant in Brazil.
“This acquisition will provide an opportunity to IVL to establish its global footprint in the fibres business in South America’s largest economy, Brazil and participate not only in the large domestic market but also enjoy strategic and logistic advantages from established free trade agreements with other Latin American countries,” IVL said on its investor relations website. The demand in Brazil is expected to grow in response to a recent recovery in consumption, IVL said. The transaction is expected to be completed within Q4/2018, subject to regulatory approvals.