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.