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|Indorama Netherlands is set to acquire Ngoc Nghia Plastics|
Expanding its packaging business into Vietnam will strengthen the market position of Indorama Netherlands in Asia-Pacific, further extending the list of deals between Thai producers and Vietnamese partners.
Indorama Netherlands has offered to buy all 81 million shares at Ngoc Nghia at VND26,219 ($1.14) apiece, totalling $91 million for the deal.
As a leading PET manufacturer, Ngoc Nghia has four sites in the country. It has a total production capacity of approximately 5.5 billion units of PET preforms, bottles, and closures, equivalent to a conversion of 76,000 tonnes per annum.
D K Agarwal, CEO of Combined PET at Indorama said, “This investment opportunity is in line with IVL’s business strategy of expanding its footprint in growing economies like Vietnam. The country is well-positioned to be the production hub for the Asia-Pacific region. The nation’s PET packaging market is expected to grow continuously due to a strong increase in consumption and improving living standards. The proposed acquisition would foster sustainable growth in the company's largest business segment, combined PET, which has been growing constantly to serve increasing global demands.”
Once the deal is completed, it will extend the list of acquisitions of Vietnamese plastics producers by Thai companies.
In July, SCG Packaging Plc. completed the purchase of a 70 per cent stake in Duy Tan Plastics, the country's largest manufacturer of rigid plastic packaging products.
SCG also owns stakes in many other plastics companies including Binh Minh Plastics JSC, Prime Group, Viet Thai Plastchem JSC Ltd., TPC Vina Plastic and Chemical Corporation Ltd., and Minh Thai Plastic Material Co., Ltd.