NN is one of the leading PET converters in Vietnam with long-standing relationships with major brands. It has four manufacturing sites in the north and south of Vietnam. It has a total production capacity of around 5.5 billion units of PET preforms, bottles and caps, the equivalent of a PET conversion of 76,000 tonnes per year.
Operating with high quality standards, NN is a trusted supplier of PET packaging products for major multinational and Vietnamese brands in the beverage and other beverage industries. Its business operations are led by an experienced management team with a solid knowledge of the industry as well as exposure and understanding of the local market. These competitive advantages are strategic assets for IVL and would complement the long-term growth of the company after integration. This acquisition project will strengthen IVL’s position in the packaging market in high-growth markets in the Asia-Pacific region.
Mr. DK Agarwal, CEO of Combined PET, IOD and Fiber Businesses at Indorama Ventures, said: “This investment opportunity is in line with IVL’s business strategy of expanding our presence in emerging economies like Vietnam. The country is positioned to be the ASEAN production hub for the Asia-Pacific region. In addition, the Vietnamese PET packaging market is expected to grow continuously owing to the strong growth in consumption and improvement in living standards. The proposed acquisition would foster sustainable growth in our largest business segment, Combined PET, which has grown steadily to meet growing demand globally. “
The acquisition process is required to follow the Securities Law, its governing decrees and circulars, as required by the Vietnam State Securities Commission and Hanoi Stock Exchange regulations. Through its subsidiary Indorama Netherlands BV, IVL would be required to make a public offer to purchase all the shares of NN. The transaction is expected to be finalized by the first half of 2022.