Indorama Acquiring European Plastics Recycling Firm

Indorama Ventures Public Co. Ltd., based in Bangkok, has signed an agreement with WIT Beteiligungs GmbH and Wellman International Trading, affiliates of the holding company Aurelius AG, to acquire a 100 percent stake in the recycling and fiber manufacturing businesses of Wellman International in Europe for around €42 million (US$56.6 million).

The acquisition is expected to be completed in 2011, subject to regulatory approvals. In a statement, Aurelius, which acquired Wellman International in 2007, says Wellman International is the largest PET recycler in Europe.

Indorama is a vertically integrated polyester chain producer and a global manufacturer of wool yarns. The company has four divisions: PET, polyester, PTA and wool. The company has close to two dozen facilities in North America, Asia, Europe and Africa.

Wellman International operates three production facilities in Europe: a polyester fiber plant in Mullagh, Ireland, that has an output of more than 80,000 tons; and recycling plants at Spijk, the Netherlands, with an output of 45,000 tons, and Verdun, France that has an annual output of 28,000 tons.

The plant in Ireland is capable of converting waste polyester into 100 percent recycled fiber. Post-consumer recycled bottles are flaked and processed with other material to produce fibers that can be used in a variety of premium applications, such as in the hygiene industry.

According to a press release from Indorama, Wellman International has the know-how to blend recycled PET (rPET) and industrial waste and will help to make Indorama Ventures a zero-waste company with a low carbon footprint. The acquisition also is in line to meet customer demands for more recycling of post-consumer products. This project acquisition also will provide access to proven recycling technology and the potential for a technology transfer to the company’s Asian assets with a reduced learning curve.