-- Indorama Ventures' Combined PET business segment announced today that it plans to discontinue operations at its Purified Terephthalic Acid (PTA) plant in Montréal-Est, with preparations for the closure beginning in September 2024.
The decision comes in response to significant changes in the polyester industry, particularly due to new builds and continued overcapacity in China with majority of it integrated, which have pressured Western producers. These feedstock cost pressures, along with decreasing demand and the inflationary environment as well as expensive feedstock, have led to low utilization rates and other plant closures in the region. In order to be resilient and continue to be cost competitive in light of these structural changes in the industry dynamics, Indorama Ventures has undertaken a strategic review of its portfolio including asset optimization where necessary. Customers will not be affected by this closure, as Indorama Ventures' production assets in the US and its extensive global footprint will ensure continued competitive and reliable supply solutions.
Muthukumar Paramasivam, President and Co-leader of the Combined PET Segment at Indorama Ventures expressed: "We are deeply saddened to make this announcement today. This was an extremely difficult decision, and it was not made lightly. However, it is a necessary step to adapt to challenging market conditions. We extend our heartfelt thanks to all our Montréal-based employees for their dedicated and loyal service since we acquired this asset in 2015. The management team at Indorama Ventures is very mindful of the impact of this decision, and we are committed to mitigating the adverse effects on our employees and the local community.”
“We are dedicated to offering professional support in various ways to affected employees, including providing redeployment opportunities within the Group where possible. Additionally, we will work closely with local suppliers to minimize the impact on their operations and assure our customers that their supplies and service will remain unaffected,” said Mr. DK Agarwal, Deputy Group CEO, Indorama Ventures.
Earlier in 2024, the company announced 'IVL 2.0,' signaling a new strategic chapter focused on optimizing financial structures, fostering organic growth, and delivering enhanced value to customers through sustainable solutions. The strategic pillars include optimizing asset utilization, driving operational excellence, unlocking portfolio value, and maintaining leadership in core markets.
Indorama Ventures is a global leader in PET production, with operations spanning Asia, Europe, and the Americas.
Release ID: 89137765
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