PET manufacturer Indorama Ventures' Combined PET business segment is opening a consultation process with representatives of employees at its Rotterdam site. The consultation is intended to evaluate the production activities at its PTA—Purified Terephthalic Acid—and PET plants following a comprehensive review of the site's competitiveness in light of the current macroeconomic challenges.
Increasing labour, raw material, and energy costs and the influx of low-cost imports have combined to negatively impact the site's competitive capability. Structural shifts in the industry are widening the gap between China and Europe in terms of raw material costs, with limited anticipated recovery.
In response to these evolving market dynamics, Indorama is therefore seeking to optimise its asset portfolio - a decision the company says will not affect its customers ‘as Indorama Venture’s extensive global footprint will enable seamless operations leveraging alternative assets’.
"The challenging macroeconomic environment, coupled with escalating geopolitical tensions and inflationary pressures, underscores the imperative for businesses to navigate wisely,” said DK Agarwal, Deputy GCEO and President of Indorama Ventures’ Combined PET Business Segment “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."
He added that 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 provide care and support for any employees affected by the decision.
This update follows the company’s announcement of 'IVL 2.0' earlier in 2024, signalling a new strategic chapter focused on optimising financial structures, fostering organic growth, and delivering enhanced value to customers through sustainable solutions. The strategic pillars of action involve optimising asset utilisation, driving operational excellence, unlocking portfolio value, and maintaining leadership in core markets.
Indorama Ventures is a global leader in PET production, with operations spanning Asia, Europe, and the Americas.