KPMG and HSBC advise Indorama Ventures on Brazilian PET purchase

24 April 2018

Indorama Ventures has acquired Brazil’s largest Polyethylene terephthalate plant. The Thai based multinational chemical producer acquired the plant to aid its global client base and service the growing domestic market for PET plastics.

The acquisition of the Polyethylene terephthalate (PET) plant in Brazil’s northern coastal town of Ipojuca will be aided by both HSBC and KPMG. HSBC will act as a financial advisor during the transition process, while KPMG is serving as finance and tax due diligence advisor. The process will be completed by the second quarter of 2018.

Indorama Ventures is one of the worlds largest petrochemicals producers, with a global manufacturing footprint across Africa, Asia, Europe and North America. The expansion into Brazil is in line with the company’s strategy to extend its market position within the region. The country is well positioned to serve Indorama Ventures' global client base as well as create a greater regional presence. 

The plant itself is fully operational and is located within one of Brazil’s regional manufacturing hotspots. Formally owned by M&G Polimeros Brazil the facility has the capacity to produce 550,000 tonnes per annum and is the largest in Brazil. The plant is located in strategic proximity to a Purified Terephthalic Acid manufacturer (a key feedstock to PET), and Indorama is looking to increase productivity through further integration. 

KPMG & HSBC advise Indorama Ventures in Brazilian PET purchase

Locally, South America is an emerging market and the demand for PET products is rising by as much as 5% in some countries. In comparison to similar markets around the world, the per capita consumption of PET products is relatively low. Sitting at 2.8kgs annually, there is substantial room for expansion into the domestic marketplace as well as increasing production for their global network. This market shift is seen by the company as a move which is supported by government policies to stimulate growth.

Aloke Lohia, Group CEO of Indorama Ventures, commented on the acquisition: “We are pleased to have reached this agreement, and taken significant action to strengthen our capability for profitable growth. Indorama Ventures now has unrivalled scale and global reach, being present in five continents with a uniquely balanced and integrated business model.”  

“This is an exciting move for us, reflecting our continued commitment to support our customers using our global scale and local presence. We look forward to capitalizing on this new market and opportunities for cross-selling to immediately deliver greater value to existing and new customers, while delivering profitable growth and enhanced shareholder value,” he said. 

Technical aviation consultancy Indaer sells MRO wing to airline

24 January 2019

Indaer, a consultancy and services company for the aviation industry, has rebranded as ‘Indaer Aviation Technical Services’ following the sale of its MRO business in Colombia to a local unnamed airline. 

Founded in 2002, Indaer provides a range of technical consultancy services to airlines that operate commercial aircraft from Airbus, ATR, Boeing, Bombardier, Embraer and Pilatus. The company’s circa 100 engineers, technicians and systems analysts provide technical and advisory services in the areas of aircraft and engine asset management and regulations, aircraft records services, maintenance planning and oversight, in-service engineering, and field support & technical training. From its base in Medellín, Colombia, Indaer serves airlines, lessors and OEM suppliers across Latin America, and globally. 

In a press statement, Juan Osorio, CEO of Indaer, revealed that the company has divested its maintenance, repair & operations (MRO) arm to a “local airline”, without disclosing the specific airline. According to the latest data released by Colombia’s Civil Aviation Authority, there are currently 26 airlines that possess an Air Operator Certificate (providing them the right to exploit commercial aviation), including Avianca, the country’s largest carrier and second largest in Latin America, number two player VivaColombia, low-cost carrier EasyFly and government-owned Satena. 

“We are very happy to sell our MRO division to this airline and to see it become a model of efficiency and technical capabilities, while we focus on the consulting and engineering business with our new corporate structure at Indaer,” commented Osorio.

Technical aviation consultancy Indaer sells MRO wing to airline

Indaer’s MRO business specialises in maintenance services for airlines, lessors and OEM suppliers, as well as helping industry players meet regulatory requirements and obtain certifications such as FAA/EASA Part 145. The arm has a particular strong track record with ATR aircraft (a French - Italian aircraft manufacturer) – Indaer covers all of the ATR’s maintenance activities from A checks to 36.000 CY checks, and has hangar bays for the ATR 42 and ATR 72 models. The MRO wing is certified by four international CAAs: FAA, UAEAC (Colombia), DGAC (Ecuador), and 2-Reg (Channel Island).

The sale sees the Colombian company continue as a consulting and technical services firm, with the brand transitioning to ‘Indaer Aviation Technical Services’. Osorio: “We will continue to provide consulting, engineering and technical services to leasing companies and operators around the globe.” Agreed with the owner is that the brand ‘Indaer’ will remain the property of the company’s original founders. 

The move comes at a time when the MRO market for commercial aircraft is seeing solid growth. According to an analysis by Oliver Wyman, the number of commercial planes in the skies will increase by 4% annually up to 2028, when a total of more than 32,000 plans will be operational, with narrow-body jets set to record the fastest growth. As a result, MRO spending is projected to rise as well, to around $115 billion in 2028. Latin America’s MRO market is currently valued at roughly $4 billion – in the coming decade, the industry will grow to $6 billion. 

Related: Brazil is Latin America's growth driver for long haul flights by European airlines.