Indorama Ventures' Combined PET business has made a strategic decision to permanently close its Purified Terephthalic Acid (PTA) manufacturing facility in Montréal-Est. The company will initiate preparatory steps for the plant closure commencing in September 2024. This strategic move aligns with Indorama Ventures' ongoing evaluation of its global footprint to optimize resource allocation and enhance operational efficiency.

Indorama Ventures has decided to close certain facilities in response to substantial shifts within the polyester industry, driven by new builds and persistent overcapacity in China, where much of the production is integrated. These changes have intensified cost pressures on Western producers, compounded by declining demand and an inflationary economic environment, which has led to lower utilization rates and other plant closures in the region. To adapt and remain cost-competitive amidst these industry dynamics, Indorama Ventures has undertaken a strategic review of its portfolio, including necessary asset optimization. Despite this closure, customers will experience no disruption, as Indorama Ventures' production assets in the U.S. and its extensive global network will ensure a continuous, competitive, and reliable supply of products.

Muthukumar Paramasivam, President and Co-leader of the Combined PET Segment at Indorama Ventures, shared his deep regret over the company's decision to close its Montréal operations. He acknowledged the difficulty of this choice, emphasizing it was necessary due to challenging market conditions. Paramasivam expressed sincere gratitude to the Montréal-based employees for their dedication and loyalty since the asset was acquired in 2015. He assured that the management team is aware of the decision's impact on employees and the local community, and they are committed to addressing the negative effects and supporting those affected by this change.

Mr. DK Agarwal, Deputy Group CEO of Indorama Ventures, emphasized the company's commitment to supporting affected employees through various professional avenues. This includes offering redeployment opportunities within the Group where feasible. He also highlighted the company’s intention to collaborate with local suppliers to mitigate the impact on their operations. Furthermore, Agarwal assured customers that their supplies and services would continue unaffected, demonstrating the company's dedication to maintaining operational stability and minimizing disruptions despite the challenging circumstances.

Earlier in 2024, Indorama Ventures launched 'IVL 2.0,' heralding a strategic transformation aimed at refining its financial framework, driving organic growth, and enhancing customer value through sustainable practices. This initiative is anchored in several strategic pillars: optimizing asset utilization to maximize efficiency, driving operational excellence to improve performance, unlocking portfolio value to leverage existing assets and opportunities, and maintaining leadership in core markets to ensure competitive advantage. By focusing on these areas, Indorama Ventures seeks to streamline operations, boosting its market position, and deliver superior value to customers, all while reinforcing its commitment to sustainability and innovation in the evolving industry landscape.