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| INDORAMA SIGNS EXCLUSIVITY TO ACQUIRE ASSETS IN EUROPE, CONSOLIDATING GLOBAL PET VISION |
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| Published on December 6, 2007 |
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Bangkok, Netherlands and UK, December 6, 2007: Indorama Holdings, Thailand (IRH)
announced today that, pending the signing of an agreement, its Board of Directors and the
Board of Directors of Indorama Polymers, Thailand (IRP) have approved the acquisition of
Eastman Chemical Company's European PTA and PET Resin assets. Eastman is a leading
PET producer in Europe with an integrated (PTA and PET resin) manufacturing capacity in
Rotterdam, Holland and a PET Resin manufacturing capacity in Workington, UK. The
combined capacity of the two locations is about 340,000 tpa of PTA and 350,000 tpa of PET
resin. IRH and IRP approved the acquisition for the PTA and the PET assets respectively as
this activity is considered strategic and are complementary to their business.
This exclusivity is an important step towards the acquisition of the European assets of
Eastman. This acquisition, when consummated, would be the third international acquisition in
the polyester sector by Indorama after the successful takeover of Siam Polyester, Thailand in
1998 and StarPet Inc., USA in 2003. Post this acquisition, the Indorama Group would
consolidate its position further amongst the World’s largest polyester manufacturers with 2.0
million tons capacity, a 20% increase from its the current capacity and enhancement in
revenue by around USD One Billion.
Commenting on this development Aloke Lohia, Chairman, Indorama Holdings, Thailand said
“Indorama, is confident that this phase of consolidation in the European PET industry is the
way to bring back returns in this otherwise lackluster market. This action reiterates our strong
commitment to the growth of PET and our confidence in the European business model that
started last year with the startup of our Greenfield investment in Europe’s largest PET plant in
Lithuania. Eastman’s plants would add more flexibility and reliability to Indorama and would
help us better serve customers across Europe.”
The PET Resin assets from this acquisition would form a part of SET listed Indorama
Polymers, Thailand (IRP) and help to achieve their global vision of being amongst the top 3
PET Resin manufacturers. AlphaPet Inc, USA a subsidiary of IRP is currently building
USA’s state of art PET Resin project co-located to BP’s PTA assets in Decatur, Alabama. The
virtually integrated facility at Decatur, Alabama and the Integrated facilities in Europe will
help IRP to participate in the value chain and strengthen its competitiveness. Indorama
Group’s PTA plant in Thailand already meets IRP needs within the country. IRP group will
reach achieve a worldwide capacity of 1.4 million tpa of PET resin upon commissioning of
AlphaPet Inc. and the completion of this acquisition.
Indorama Group is the given name to the unconsolidated business of the Lohia family. These
businesses are owned and managed independently. Indorama Group has diverse business
interests in PTA, Wool, Cement and Petrochemicals in addition to PET.
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