Thailand-based Indorama Ventures, along with Far Eastern Investment and Alpek, has formed a joint venture (JV) firm to acquire M&G integrated PTA/PET assets for over $1.1bn.
The new JV company Corpus Christi Polymers (CC Polymers) will acquire integrated PTA/PET plant currently under construction in Texas.
The facility, which is located in Corpus Christi of Texas, will hold capacity to produce 1.1 million metric tons of polyethylene terephthalate (PET) and 1.3 million metric tons of PTA (purified terephthalic acid) per annum.
As per terms of the deal, each partner in the JV will contribute one-third investment of the total acquisition amount, which would be around $ 375m for each party.
Each partner holds right to off-take one-third of the capacity and source their feedstock independently.
In 2016, M&G launched its Corpus Christi project, as part of its efforts to develop the world’s largest integrated PTA/PET production line and single largest US PTA plant.
During the fourth quarter of 2017, the M&G filed for bankruptcy protection under chapter 11 to divest its assets.
Far Eastern Investment is the subsidiary of Far Eastern New Century (FENC), which first invested in M&G’s PET plant in West Virginia and R&D center in Ohio in February this year.
FENC is claimed to be the first PET producer to manufacture first PET bottle in Asia. The company currently operates PET production sites in Taiwan and China.
The PET plant in Vietnam is expected to be operational in June this year with a capacity of 400,000 tons per year.
Earlier this month, Indorama Ventures also agreed to acquire M&G Polimeros Brazil, a producer and marketer of PET resins for packaging applications, for an undisclosed sum.
M&G Polimeros Brazil in Ipojuca Brazil is claimed to be is the largest PET facility in country, with capacity of 550,000 tonnes per year.
