Indorama Takes DuPont Teijin Films
World-leading PET producer Indorama Ventures Ltd (IVL) has agreed to buy DuPont Teijin Films (DTF), a major producer of biaxially-oriented polyethylene terephthalate (BOPET) and polyethylene naphthalate (PEN) films. Financial terms were not disclosed.
The proposed purchase is the latest in an aggressive acquisition spree by IVL, which has picked up several polyester-related assets in recent years, including in several European countries, Turkey, India, Mexico and the US.
A joint venture between DuPont (now merged with Dow Chemical) and Teijin, DTF has a total film/polymer capacity of 277,000 t/y and eight production plants in Europe, the US and China, as well as a global innovation center in the UK. It specializes in film for specialty, industrial, packaging, automotive, advanced magnetic media, photo systems, electrical and electronics applications.
The transaction, which will also give IVL the Melinex and Mylar brands, is expected to close during late 2017 or early 2018, depending on the usual regulatory approvals.
IVL Group’s CEO, Aloke Lohia, said the acquisition marks a new chapter for IVL and is the next step in creating a leading position for customer solutions in films. He commented: “DTF provides prudent growth in an industry related to our core businesses and is a strong foundation for future growth. DTF has a strong history of R&D with over 700 patents, which makes it a strategic fit with our own innovation capabilities.”
As well as further enhancing IVL’s PET integration, the deal will also give it a captive supply of naphthalene dicarboxylate (NDC), a specialty chemicals used in high-performance polymers and films. IVL said it is the world’s only commercial producer of NDC.
For Teijin, the divestment is part of its corporate restructuring. The Tokyo-based group said the four DTF joint ventures - in the UK, Luxembourg, US and Hong Kong (which includes two jvs in China) - had become “less important as resources allocation targets”.
According to IVL, global consumption of BOPET will increase at a compound annual growth rate of about 7% as the number of applications and end-uses continues to rise.
Earlier this year, India’s Jindal Poly Films was rumored to be negotiating to buy DTF’s European operations for $300 million.