IVL adds to Polish holdings

SET-listed plastics maker Indorama Ventures Plc (IVL) has entered into an agreement to acquire IMP Polowat, a PET recycler in Poland.

The acquisition consists of two assets located in Bielsko-Biala and Leczyca, close to the population centres of Krakow and Warsaw.

The production sites have a combined capacity of 23,000 tonnes of recycled polyethylene terephthalate (rPET) flakes and 4,000 tonnes of rPET pellets. The company is supported by 118 employees.

The acquisition is expected to close in the third quarter of 2020, subject to regulatory approval.

IMP Polowat has a solid presence as one of the leading PET recyclers in Poland. The acquisition is consistent with IVL’s target of scaling its recycling capacity to reach 750,000 tonnes by 2025. It also adds a recycling platform for IVL in Eastern Europe and offers a chance to meet rising rPET demand for more sustainable packaging.

Poland consumes 260,000 tonnes of PET bottles a year and is actively discussing a deposit return scheme and improved collection. A significant opportunity exists to increase capacity and capitalise on growing demand for rPET.

“We are pleased to continue to execute on our growth strategy of pursuing strategic acquisitions even during this unprecedented time,” said Yashovardhan Lohia, executive director and head of sustainability at IVL. “IMP Polowat represents a strategic fit for us.”

IVL previously acquired an integrated PET asset in Wloclawek, Poland.