Thailand IVL to divest from Portugal PTA maker on poor economics

SINGAPORE (ICIS)–Indorama Ventures Ltd (IVL) is divesting from its indirect subsidiary in Portugal that makes purified terephthalic acid (PTA), the Thailand-listed polyester major said on Wednesday.

Its entire stake on Indorama Ventures Portugal PTA (IVPPTA) will be pulled out, it said.

IVPPTA has a 700,000 tonne/year PTA plant in Sines, Portugal, which was mothballed in October 2023.

The Portuguese company is a wholly owned subsidiary of Indorama Netherlands BV (INBV), IVL’s financial holding company registered in the Netherlands.

“After a thorough assessment of market conditions and economic pressures, including high raw material and energy costs, inflationary impacts, and competition from low-cost PTA imports, the company has decided to implement its asset optimization strategy by divesting its investment in IVPPTA,” the company said in a statement.

The divestment will not affect IVL’s operations or financial position, as IVPPTA’s assets were already impaired last year, IVL said.