Indorama Ventures to invest $150M in three PET recycle plants in India
Recycled PET from the three plants will supplement Indorama Ventures' current PET production of 800,000 tonnes/year for Indian and export markets.
Bangkok-headquartered and Indian majority-owned Indorama Ventures Public Co Ltd is investing $150 million in three PET recycling plants in India and is aiming to start commercial production in 2026.
"We have obtained basic regulatory approvals, and land acquisition is going on nearer to our three existing PET-producing plants at Haldia, Nagpur and Panipat," Indorama Ventures Group CEO Aloke Lohia told PTI, on the sidelines of the 21st Forbes Global CEO Conference in Singapore.
Recycled PET from the three plants will supplement Indorama Ventures' current PET production of 800,000 tonnes/year for Indian and export markets. PET or polyethylene terephthalate is said to be durable and and can be recycled multiple times.
Lohia explained the need to increase the use of recycled PET, supporting global initiatives to reduce the use of making new products from fossil fuels.
Noting the Indian economy's high growth, Lohia said he was bullish about business prospects in India, especially in the manufacturing sector, and the government-led export promotion initiatives.
Lohia said Indorama is focused on scaled production in India, pointing to the insatiable local demand and export potential.
"There are so many applications in the automobile industry," he said and singled out the potential of airbags in automobiles.
"We have the technology and base material nylon and polyester that is used to make airbags, which are mandatory in automobiles in Western markets," he remarked.
"We will want to do more than just replace imports of components, such as airbags, that are used by automobile manufacturers in India."
Lohia expects demand for products made with advanced technologies to pick up in the Indian market as the country progresses economically and accelerates industrialisation programmes.
"We started in India about six years ago and are confident of prospects given the bright market outlook and the opportunities for growth," he said.
Indorama Ventures' executives are consulting Indian original equipment manufacturers of advanced technology-based auto components. Investment potential is being evaluated, which would be scaled for domestic and export markets.
Indorama Ventures, a global chemical company with operations in 35 countries built over three decades, is a leading manufacturer of PET and recycled PET.
Its mobility fibre business produces a range of fibres and yarns used in the auto industry, which are developed and deployed widely in markets such as the United States and Europe.
Edited by Swetha Kannan