HANOI - Indorama Ventures is to acquire Vietnam-based PET converter, Ngoc Nghia Industry.
NN is one of the country's major PET converters with long-standing relationships with major brands. It has four manufacturing sites in both the North and South of Vietnam and has a total production capacity of approximately 5.5 billion units of PET preforms, bottles and closures, or equivalent to a PET conversion of 76,000 tons per annum.
Operating with high quality standards, NN is a trusted provider of PET packaging products to major multinational and Vietnamese brands in the beverage and non-beverage industries.
These competitive advantages are strategic fits for IVL with the US$92 million deal complementing the company’s long-term growth after integration. This proposed acquisition will strengthen IVL’s market position in the packaging business in high growth markets of the Asia-Pacific region.
Announcing the deal, D K Agarwal, CEO of Combined PET, IOD and Fibers Business at Indorama Ventures, said: “This investment opportunity is in line with IVL’s business strategy of expanding our footprint in rising economies like Vietnam. The country is positioned to be the ASEAN production hub for the Asia-Pacific region. Moreover, Vietnam’s PET packaging market is expected to grow continuously due to strong growth in consumption and improving living standards. The proposed acquisition would foster sustainable growth in our largest business segment, Combined PET, which has been growing constantly to serve increasing demands globally.”
The deal is subject to regulatory confirmation but is expected to close in the first half of 2022.