Indorama Acquires Italian Polyester, Yarn Manufacturer

Company Performance

Indorama Acquires Italian Polyester, Yarn Manufacturer

Indorama Ventures Public Co. Ltd. (IVL; Bangkok, Thailand) has entered into an agreement to acquire Italy-based Sinterama S.p.A, a leading global polyester automotive interiors and high performance colored yarns manufacturer. The acquisition comprises five production sites in four countries in Italy, Brazil, China and Bulgaria, the last being a new market for IVL. It has a combined capacity of around 30,000 metric tons per year (m.t./yr). Europe imports over 275,000 m.t. of yarns annually and Sinterama can grow and strengthen its position as local supplier. The company currently employs 889 people. The transaction is expected to be completed in the third quarter 2019, subject to regulatory approvals. Sinterama holds leading positions in the highly specialised applications in Europe. The company is vertically integrated from chips to yarns and offers a vast range of coloured polyester yarns for the automotive, furnishing, apparel & technical applications. Since its inception in 1968, Sinterama has offered innovative solutions and invested in cutting-edge product research. It has substantial accumulated knowledge developed over a long period of time. This will provide IVL comprehensive and innovative solutions for automotive and home applications to better serve customers and meet customers' needs in the future. This acquisition is a perfect fit for IVL. Sinterama has a strong production base, providing an excellent platform to integrate IVL's existing specialties business. The highly complementary portfolio, customer base and geographical footprint of the two companies will open up new market opportunities & enhance value to our customer by further enabling them to leverage IVL's existing manufacturing capabilities and supply chain. Aloke Lohia, Group CEO of Indorama Ventures said, "This acquisition marks an important milestone in our strategic alliance with Sinterama, which has been a partner in Trevira since 2011 and is the industry partner of choice for high-value filament yarns. While we have achieved significant growth in this space over the past years, we believe Sinterama will be the catalyst for us to consolidate and advance our position in this highly demanding and exclusive market. Sinterama brings along a very experienced team of highly respected professionals who together with IVL management make a formidable combination of managerial excellence. Bringing Sinterama's experience and network of strategically located facilities into IVL will enable us to provide best-in-class offerings for customers. We are now better positioned than ever to meet the needs and exceed the expectations of customers on a truly global scale." Paolo Piana, Chairman of Sinterama, said, "It's a great opportunity for Sinterama to become part of such a strong group like Indorama Ventures, global leader in the polyester business. The perfect combination seals twenty years of collaboration and leads to the establishment of a global player leader in high added value polyester yarns and applications."