Indorama Ventures (IVL) has completed acquisition of M&G Fibras Brasil, in Cabo de Santo Agostinho, Brazil. The Cabo plant manufactures and supplies polyester staple fibre, with total polymerisation capacity of 75,000 ton per annum. This acquisition is the company’s debut into the fibre business in Brazil and is a strategic step forward. It provides IVL a unique opportunity to add capacity in fibres and establish its presence in South America’s largest economy, Brazil.
The acquisition will significantly boost IVL’s presence in the fast-growing market in Brazil, where the domestic demand is expected to grow in response to a recent recovery in consumption. In addition, IVL is well-positioned to expand more into nonwoven applications which are growing strongly in Brazil, supported by the presence of global brands.
IVL has a good track record of successfully integrating acquired business into its operations. IVL anticipates lowering its fixed costs by creating synergies and operating efficiencies, driven by supply chain optimization with the delivery of PTA from a nearby location, and consolidation of its commercial offices by joining with IVL’s PET site.
