Bangkok-based Indorama Ventures, one of the world’s leading producers in the intermediate petrochemicals industry and a global manufacturer of wool yarns, plans to invest $5.5 billion in its various businesses.
The decision comes after its acquisition of a PET plant in Egypt last year and in Nigeria this year. The investment will take place over the next four years to further grow the company’s fibres, chemicals and upstream business, following a series of acquisitions in United States, Brazil, and Germany in 2018.
Indorama Ventures had acquired a PET plant in Nigeria and Egypt to meet the growing demand for bottles as its customers, Coca-Cola and Pepsi expand in the Northeast and West African markets. The African Development Bank also approved a $100 million senior loan to Indorama Eleme Fertiliser and Chemicals Limited last year to ensure the company’s expansion.
According to a report, Indorama Ventures plan to split $4 billion of the investment budget across its packaging, chemicals and olefin business segments, with a goal to double its earnings before interest, tax, depreciation and amortisation (EBITDA) to $3 billion by 2023, from $1.4 billion last year.
The Chief Executive Officer of Indorama Ventures, Aloke Lohia said the investment plan is in addition to the firm’s committed capital expenditure of $1.5 billion.
Lohia said “Indorama’s longer term strategy is to increase the size of other polymers through packaging and fibres and when the scale is large enough, go upstream to build the firm’s captive Olefin demand”.
The report revealed that Indorama, which counts Nestle, German automaker, Audi and Swedish furniture retailer, Ikea among its customers, sees Africa as a growth market.
Indorama Ventures has operating sites in 31 countries in Africa, Americas, Asia and Europe