Indorama Ventures completes acquisition of PET packaging business in Vietnam
Indorama Ventures Public Company Limited (IVL), a global sustainable chemical company, completed the acquisition of Ngoc Nghia Industry – Service – Trading Joint Stock Company (NN), one of Vietnam’s leading PET packaging companies. The acquisition will boost IVL’s market position as it continues to expand its integrated offering of PET products to major multinational customers throughout the region.
Ngoc Nghia is a trusted market leader in PET, preforms and closures, with long-term partnerships with major global and Vietnamese brands in the beverage and non-beverage industries. It has four manufacturing facilities in Vietnam’s north and south with a total production capacity of 5.5 billion units of PET preforms, bottles, and closures, totaling 76,000 tons of PET conversion each year.
IVL plans to sustainably grow the business to better serve customers in Vietnam, a high-growth new market, as well as IVL’s major PET packaging customers across the region including global household beverage brands. Ngoc Nghia’s family business roots, led by its founder for over 30 years, was integral to IVL’s decision to invest in the company as a strategic match. The existing team’s extensive local market knowledge will be further augmented by leadership from IVL’s PET packaging business unit, bringing a powerful combination of local, regional and global expertise to the market.
Mr D K Agarwal, CEO at IVL, said, “We are glad to embark on our journey in Vietnam, which is one of the high-growth markets in the region. This acquisition is complementary to our long-term strategy of extending our global footprint and resilient business platform. With long-standing experience in the integrated PET business, IVL will bring more competitive advantages to NN. The development will also enable us to better serve our large regional customers, many of which are major household brands who depends on a reliable, consistent supply of PET packaging products across the region.”
“NN is a market leader in PET, preforms and closures in Vietnam, where we can increase our focus on customers in the ASEAN regional champion market, offering a full range of PET packaging solutions with enhanced operational excellence. This includes potential to expand our world-leading recycled PET (rPET) business into Vietnam. As a family business, it is a very good fit for IVL, and adds a new domestic market to our growing business,” said Mr Sunil Marwah, business head for IVL’s packaging vertical. IVL purchased 97.8% of Ngoc Nghia for a total payment of 2,091,974,786,376 Dong (about 3,096.12 million Baht, based on exchange rate of 100 Vietnam Dong = Baht 0.1480 as at 19 April 2022.
