Indorama Ventures is acquiring Brazilian company M&G Fibras. The transaction is expected to be completed in the fourth quarter of 2018 and fills an important gap in IVL’s global footprint in fibers by establishing capacity in Brazil. It also offers IVL an opportunity to participate in the domestic market along with strategic and logistic advantages from established free trade agreements with other Latin America countries. The demand in Brazil is expected to grow in response to a recent recovery in consumption.
IVL will also be in an advantageous position to expand more into nonwoven applications which are growing strongly in Brazil, supported by the presence of global brands. As a world leader in the service of the hygiene sector, the presence of global brands will allow IVL to offer its customers an extensive portfolio of products to serve their needs.
Brazil has a very innovative textile industry and its relatively high consumer purchasing power is driving the growth in nonwoven and filling fibers. IVL’s strategy is to continue to serve the growing needs of the existing customers of M&G as well as the needs of IVL’s global branded customers in this fast-growing economy and stay ahead of the curve in introducing quality products.