Indorama Ventures completes acquisition of PET packaging business in Vietnam

Indorama Ventures Ltd. (IVL), Bangkok, has completed the acquisition of Ngoc Nghia Industry (NN), a polyethylene terephthalate (PET) packaging company based in Ho Chi Minh, Vietnam. IVL purchased 97.8 percent of Ngoc Nghia for a total payment of 2.09 trillion Dong (about $91 million)  

IVL says the acquisition will boost its market position as it expands its integrated offering of PET products to multinational customers in the region.  

“We are glad to embark on our journey in Vietnam, which is one of the high-growth markets in the region,” says D.K. Agarwal, CEO of IVL. “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 depend on a reliable, consistent supply of PET packaging products across the region.”   

IVL says Ngoc Nghia is a trusted market leader in PET, preforms and closures. It has long-term partnerships with major global and Vietnamese brands in the beverage and nonbeverage industries. NN operates four manufacturing facilities in Vietnam with a total production capacity of 5.5 billion units of PET preforms, bottles and closures, totaling 76,000 tons of PET conversion annually.  

IVL says it plans to sustainably grow the business to better serve customers in Vietnam and 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 more than 30 years, were integral to IVL’s decision to invest in the company as a strategic match. The existing team’s 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., IVL says.