Montreal PTA producer bought by Thailand’s IVL
The purified terephthalic acid (PTA) business of Montreal-based Cespa Química SA – a wholly owned affiliate of Cepsa, and IQ Chemie INC, a subsidiary of Investissement Québec – has been acquired by Thailand’s Indorama Ventures PCL (IVL), a petrochemical producer.
The acquisition will allow IVL to expand its footprint in North America since the newly acquired Cepsa is the only PTA facility in Canada, and one of only three in North America. PTA is used primarily in polyester production including polyester fibre, PET bottle resin, and polyester film.
“This will be our inaugural entry into Canada,” said IVL chief executive Aloke Lohia in a statement. “Cepsa Chimie Montreal SEC 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 strategy of expanding in our core businesses, primarily in the West.”
The financial terms of the deal have not been released. The acquisition is expected to be completed in the second quarter of 2015, subject to regulatory approvals.
IVL reported annual revenue of US$7.5 billion in 2014, employs 14,000 people and has 51 manufacturing sites.