Indorama Ventures Public Company Limited (IVL), a global chemical producer, announced it has entered into a definitive agreement to acquire Industrie Maurizio Peruzzo Polowat spółka z ograniczoną odpowiedzialnością (IMP Polowat), a PET recycling facility in Poland.
The acquisition consists of two assets, strategically located in Bielsko-Biala and Leczyca, close to the major population centers of Kraków and Warsaw. The production sites have a combined capacity of 23,000 tonnes of recycled Polyethylene Terephthalate (rPET) flakes and 4,000 tonnes of rPET pellets. The company is supported by 118 employees.
The acquisition is expected to close in the third quarter of 2020, subject to regulatory approvals.
IMP Polowat has a solid presence as one of the leading PET recyclers in Poland. This acquisition is consistent with IVL’s ambitious target in scaling its recycling capacity to reach 750,000 tonnes by 2025. It also adds an attractive recycling platform for IVL in Eastern Europe, and will open up new opportunities to meet the increasing rPET demand for more sustainable packaging solutions. The combination of access to local bottle supply and trusted product quality will secure opportunity for IVL for growth and expansion over time.
Poland is a strategic market for IVL, and has made significant progress on waste management and recycling. With 260,000 tonnes of PET bottle consumption in Poland, and active discussion about a Deposit Return Scheme and improved collection, there is a significant opportunity to increase capacity and capitalize on the growing demand for rPET.
Mr. Yashovardhan Lohia, Executive Director and Head of Sustainability of Indorama Ventures, said, “We are pleased to continue to execute on our growth strategy of pursuing strategic acquisitions even during this unprecedented time. IMP Polowat represents a strategic fit for us.
Indorama Ventures’ commitment to the Polish market goes back to 2011, when we acquired an integrated PET asset in Wloclawek. With the acquisition of IMP Polowat we are adding a recycling facility to bring synergies and a circular business model to our Polish operations.
IVL is fully committed to its strategy and its role in addressing the issue of plastic waste and enhancing the circularity of PET. We continue to make good progress and remain confident in achieving our ambitious 2025 target to recycle at least 50 billion bottles per year, and investing US$ 1.5 billion to achieve this by 2025.”