BANGKOK -- Thai petrochemical company Indorama Ventures said Thursday it will acquire a Portuguese plant making a feedstock for PET, one of the most commonly used plastics.
The plan is to purchase Artlant PTA, which produces purified terephthalic acid (PTA), for an undisclosed price by the end of the year.
PTA is used to make polyethylene terephthalate (PET), from which plastic bottles are made.
Market conditions for PET have worsened owing to increased output from China. Indorama seeks greater scale through acquisitions to sharpen its cost-competitiveness.
The PTA plant, with an annual output capacity of 700,000 tons, is the second-largest in Europe, trailing only a BP plant. Indorama will also buy an adjacent business that supplies electricity to the plant.
The Thai company is increasing its foothold in Europe. It bought a PET plant in Spain in 2016, and another in the Netherlands this June. Both of these facilities produce PTA as well, but with some of the output being exported, Indorama is boosting its self-sufficiency in the feedstock with the latest acquisition.