After its acquisition of a PET plant in Egypt last year and in Nigeria this month, Indorama Ventures, one of the world’s leading producers in the intermediate petrochemicals industry, plans to invest $5.5 billion in its various businesses.
The global manufacturer of wool yarns plans to invest $5.5 billion over the next four years to further grow its fibres, chemicals and upstream business following a series of acquisitions in U.S, Brazil, and Germany in 2018.
Recall the African Development Bank (AfDB) approved a $100 million senior loan to Indorama Eleme Fertilizer & Chemicals Limited last year for the Indian company’s expansion plans.
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.
Breakdown of $5.5 billion investment
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, Aloke Lohia said the investment plan is in addition to the firm’s committed capital expenditure of $1.5 billion.
Indorama’s longer-term strategy is ‘to increase the size of other polymers through packaging and fibres and when the scale is large enough, to go upstream’ to build the firm’s captive olefin demand.” – Lohia.
According to the report, Indorama, which counts Nestle, German automaker, Audi and Swedish furniture retailer, Ikea among its customers, sees Africa as a growth market, Lohia said.
Benefit from CBN’s latest FX policy
In December, Nairametrics named Indorama Ventures as one of many companies that will benefit from the Central Bank of Nigeria’s FX policy. The apex bank removed fertilizer from the official foreign exchange market two months ago.
About Indorama Ventures
Indorama Ventures is a world-class chemicals company with a global integrated leader in PET and fibres, serving major customers in diversified end-use markets. Production of PET resin – a polymer used to make plastic bottles – is Indorama’s main business. It also makes fibres used in products like seat belts and tires, and to a smaller extent, olefins, feedstock for PET resin, under its upstream business.
Headquartered in Bangkok, Thailand, Indorama Ventures has operating sites in 31 countries on five continents – Africa, Americas, Asia, Europe & Eurasia.
President Trump dumps plan to force foreign students to leave the US
Trump administration had attempted to order foreign students to depart the country.
U.S President, Donald Trump has put aside a plan that was to order foreign students to leave the country. The Trump administration had attempted to order foreign students to depart the US to their own countries if their classes are to be taught online.
The announcement had triggered an outrage forcing the Massachusetts Institute of Technology, Harvard University, and a host of others to sue President Trump over the policy, arguing that “the measure was unlawful and would adversely affect their academic institutions.”
According to details of one of the suit, one aspect of the modified guidelines, which has thus far proven to be quite controversial, requires foreign students to remain in their home countries if their courses are going be taught online. Foreign students who are already in the US were also directed to leave the country if their courses are online-based.
In a twist of events, Allison Burroughs, U.S District Judge in Massachusetts who sat on the suit announced that the US government along with Harvard and MIT came to a settlement after the Ivy League Schools sued over the new policy for foreign students.
The suit alleges that the modifications made to the Students and Exchange Visitor Programme (SEVP) by the US Immigration and Customs Enforcement (ICE) came without warning.
It would be recalled that by March the US government waived the F-1 and M-1 Visas that had a limit on online classes foreign students can take. The policy was reversed on July 6 by President Trump, as it would have affected University preparations for the coming semester.
Harvard alone has about 5000 foreign students, including Nigerians, revising the US immigration guidelines on foreign students would cause disruptions in the coming autumn semester for foreign students.
UPDATE: President Trump has been sued by MIT, Harvard over foreign students ban
The Massachusetts Institute of Technology and Harvard University have sued President Donald Trump over a new policy that restricts foreign students, whose courseworks would be taught online, from entering/remaining in the USA.
According to the Wall Street Journal, the suit was filed today in the US District Court in Boston, Massachusetts. The suit alleges that the modifications that were made to the Student and Exchange Visitor Programme (SEVP) by the US Immigration and Customs Enforcement (ICE), came without warning.
The impromptu nature of the modifications, therefore, has left Harvard and MIT with no choice but to think it was “arbitrary and capricious”.
Recall that ICE had on Monday announced the eagerly awaited modifications ahead of foreign students’ return to US campuses for the autumn semester.
One aspect of the modified guidelines, which has thus far proven to be quite controversial, requires foreign students to remain in their home countries if their courses are going be taught online. Foreign students who are already in the US were also directed to leave the country if their courses are online-based.
Harvard University is one of the ivy league American schools that recently announced plans to teach their courseworks entirely online, due to the COVID-19 pandemic. Harvard’s plan is such that students living on campus and off campus would attend classes online. However, the reviewed SEVP guideline by ICE has disrupted that plan.
CNN International quoted Harvard University President, Larry Bacow, to have said:
“The order came down without notice—its cruelty surpassed only by its recklessness. It appears that it was designed purposefully to place pressure on colleges and universities to open their on-campus classrooms for in-person instruction this fall, without regard to concerns for the health and safety of students, instructors, and others.
“This comes at a time when the United States has been setting daily records for the number of new infections, with more than 300,000 new cases reported since July 1.”
Similarly, MIT’s president L. Rafael Reif, issued a strongly-worded statement condemning the development. According to him, ICE’s modified SEVP guidelines “disrupts our international students’ lives and jeopardizes their academic and research pursuits.”
He went further to write that MIT’s “international students now have many questions – about their visas, their health, their families and their ability to continue working toward an MIT degree. Unspoken, but unmistakable, is one more question: Am I welcome? At MIT, the answer, unequivocally, is yes.”
Note that this story matters because of its international ramifications. Harvard University alone has about 5,000 foreign students, some of whom are Nigerians. The revised guidelines by the US Immigration and Customs Enforcement is bound to disrupt these students autumn semester unless the US Government rescinds the directive.
Africa’s GDP could fall by 3.4% in 2020 if COVID-19 continues – AfDB
The bank warns projected GDP losses for 2021 ranges from $27.6 billion to $47 billion.
The African Development Bank (AFDB) published its African Economic Outlook 20202 Supplement on Tuesday and warned that the continent’s GDP would fall by at least 1.7%, and if the coronavirus pandemic continues into the second half of 2020, it could contract up to 3.4%.
“Real GDP in Africa is projected to contract by 1.7% in 2020, dropping by 5.6 percentage points from the January 2020 pre-COVID-19 projection of the virus, if the virus has a substantial impact but of short duration. If it continues beyond the first half of 2020, there would be a deeper GDP contraction in 20202 of 3.4% down by 7.3 percentage points from growth projected before the outbreak of COVID-19,” the bank said.
Access Economic Research Data and the Associated Insights from Nairametrics
AFDB warns that cumulative GDP losses could range between $173.1 billion and $236.7 billion in 2020-2021.
“Africa could suffer GDP losses in 20202 between $145.5 billion (baseline) and $189.7 billion (worst case) from the pre-COVID-19 estimated GDP of $2.59 trillion for 2020”.
The bank warned some losses will be carried over into 2021, as the projected recovery would be partial, and warns projected GDP losses for 2021 ranges from $27.6 billion to $47 billion (worst case).
The bank said countries with poor healthcare systems, oil-exporting nations, tourism-dependent nations and other resource-dependent nations will be the hardest hit.
The bank calls for countries to reopen economies and advised a “phased and incremental approach that carefully evaluates the trade-off between restarting economic activity to quickly and safeguarding the health of the population”.
The Economic Outlook Supplement is a revised projection from an earlier January outlook that projected 3.9% growth from Africa’s largest multilateral bank.