Indorama Ventures’ Combined PET business segment will enter into a consultation process with representatives of site employees to evaluate the possible future for production activities at its PTA (purified terephthalic acid) and PET (polyethylene terephthalate) plants, located at its integrated production site in Rotterdam, Netherlands.
The evaluation follows a comprehensive review aimed at bolstering the site’s competitiveness. However, it occurs amidst notable competitive and macroeconomic challenges, including increasing labour, raw material, and energy costs, alongside the influence of low-cost imports.
Structural shifts in the industry are contributing to a growing divergence in raw material expenses between China and Europe, with limited anticipated recovery. Consequently, there is a need to optimize the company’s asset portfolio to enhance its position and ensure resilience in response to evolving market dynamics. Customers will not be affected as Indorama Venture’s extensive global footprint will enable seamless operations leveraging alternative assets.
DK Agarwal, Deputy GCEO and President of Indorama Ventures’ Combined PET Business Segment stated, “The challenging macroeconomic environment, coupled with escalating geopolitical tensions and inflationary pressures, underscores the imperative for businesses to navigate wisely. In light of these factors and the ongoing structural transformations in our industry, we believe that a deep review of all our asset portfolio needs to be done jointly with all our stakeholders”.
Agarwal added, “Indorama Ventures’ global footprint has always been a competitive advantage ensuring reliable service to customers worldwide and it will continue to do so. Taking decisive action in this regard aligns with our strategic goals as we continually seek avenues to enhance value and bolster our cost competitiveness”.
The company will focus on mitigating negative impact and providing care and support for any affected people. As per the press release, the strategic pillars of action involve optimizing asset utilization, driving operational excellence, unlocking portfolio value, and maintaining leadership in core markets. Indorama Ventures is into PET production, with operations spanning Asia, Europe, and the Americas.
