"In any previous acquisition, our shareholders have seen that we have double-digit returns and this acquisition should be no different," Aloke Lohia, CEO of IVL, told the annual shareholders' meeting yesterday.
The JV will increase the Thai company's output of pure terephthalic acid (PTA) and polyethylene terephthalate resins (PET) from 1.5 million and 1.8 million tonnes, respectively. The facilities in Italy may be expanded later to meet growth in the demand.
The market for the polyester chain had a bright future and was not prone to economic cycles, so it was necessary to continue to grow the business across the world, he said.
"Currently the assets are not running at their full potential but as soon as the acquisition is complete we would take some time to ramp up production to its full capacity," he said.
With the new asset, IVL would have access to all of Europe with three production facilities, he said.
There were opportunities for future growth in various parts of the world, including the more mature US market, he said.
"We want to grow faster than the market, we want to be around the world, recognised as the leader in the polyester value-chain, and that is the reason why I am excited about the opportunities that exist out there for IVL," he said.
During 2008 and 2009, IVL ran at 100 per cent of capacity.
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