Indorama Ventures Public Co. Ltd. (IVL; Bangkok, Thailand; www.indorama.net) has signed an agreement to acquire 100% shareholding of the Montreal-based purified terephthalic acid (PTA) business of Cepsa Química SA, Cepsa Chimie Montréal s.e.c. Cepsa’s plant is the only PTA facility in Canada, and one of only three PTA suppliers in North America. The acquisition, subject to the usual regulatory approvals, will allow the company to expand its footprint into Canada.
“This will be our inaugural entry into Canada,” says Aloke Lohia, IVL group CEO. “Cepsa Chimie Montréal s.e.c. provides us the unique opportunity to acquire assets that will consolidate our North American polyester value chain businesses for added feedstock security. The acquisition is in line with our announced strategy to expand in our core businesses, primarily in the West.”
Cepsa Chimie Montréal s.e.c. has, at this production site, a capacity of approximately 600,000 metric tons per year (m.t./yr) of PTA and receives piped supply of its feedstock para-xylene from an adjacent refinery. The plant is logistically well-placed to economically serve customers via rail access or via the St. Lawrence River.