Page 56 - Plastics News October 2018

BuSinESS nEwS

Indorama Ventures, Loop Industries form JV

ndorama Ventures and Loop Industries have formed a joint by business and consumers to the circular economy.“This
Iventure to manufacture and commercialize sustainable is a first strategic step in our global commercialization
polyester resin to meet the increasing global demand from plan and mission to accelerate the world’s shift toward
beverage and consumer packaged goods companies. This sustainable plastic and away from the traditional, take,
partnership brings together Indorama Venture’s world- make and dispose economy.”
class manufacturing footprint
and Loop’s proprietary science
and technology to become a IOC, ONGC, Oil India may
reliable world leader in the
‘circular’ economy for 100% buyback shares worth Rs 10,000
sustainable and recycled PET crore
resin and polyester fiber.
The Indorama Ventures/Loop
Industries partnership launches oards of oil companies Indian Oil Corporation (IOC),
a commercial solution for BOil and Natural Gas Corporation (ONGC) and Oil
consumer packaged goods companies in response to the India are considering buying back shares worth Rs
rapid growth in global plastic consumption for which there 10,000 crore. ONGC’s buyback is expected to be of
is a great need to responsibly collect and reuse these about Rs 4,800 crore, Oil India’s Rs 1,100 crore and IOC
materials.Through this joint venture, Indorama Ventures may acquire 3 percent of its shareholding valued at Rs
and Loop Industries will be able to perpetually recycle 4,000 crore. According to reports ONGC and Oil India
the ever increasing amounts of PET plastic and polyester will use internal resources to fund this buyback, while
fiber proving the promise of and encouraging the shift to
a circular economy. The 50/50 joint venture will have an
exclusive world-wide license to use Loop’s technology
to produce 100% sustainably produced PET resin and
polyester fiber with plans to begin commercial production
in Q1 2020. The production from the facility will be fully
subscribed by leading global consumer brands.Indorama
Ventures Group CEO Aloke Lohia said: “At Indorama
Ventures, we continue to pursue the right opportunities to
fill gaps that are intrinsic to our sustainable and profitable
business by deploying resources in order to support the IOC may have to rely on debt to fund this purchase. At
circular economy. This joint venture with Loop Industries the end of March, IOC and ONGC had a borrowing of
emphasizes our belief in recycling and is aimed at investing Rs 45,000 crore and Rs 14,000 crore, respectively. The
in new technologies that can steer further our aspiration government set a divestment target of Rs 80,000 crore
of being a world-class chemical company making great and announced buyback plans for oil companies to help
products for society.” Loop Industries founder and CEO meet this target. However, oil companies think the
Daniel Solomita said: “We are excited to launch this Centre has set too steep a target for them. IOC wants
partnership with Indorama Ventures, who provide a global to expand its refining, transportation and marketing
leadership platform in petrochemical manufacturing and capacity and plans to spend Rs 1,50,000 crore over the
a shared commitment to sustainability. This joint venture next six years, including capex of Rs 23,000 crore this
combines each of our companies’ area of expertise so fiscal. ONGC has similar plans and intends to spend Rs
that we may both play a leading role in the global shift 38,000 crore in FY19. Oil India’s capex for this year
stands at Rs 4,300 crore.

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