Abstract
Thailand-based polyethylene terephthalate (PET) giant Indorama Ventures has agreed to pay $795 million for Old World Industries’ chemical business, which operates the largest ethylene glycol plant in the U.S. The business consists primarily of a complex in Clear Lake, Texas, that has 800 million lb of capacity per year for ethylene glycol, a key PET raw material. The plant also makes coproduct diethylene and triethylene glycol, as well as purified ethylene oxide, used to make ethoxylates for the detergent industry. The business had before-tax profits of about $158 million in 2011 on sales of $567 million. Old World purchased the glycol plant from Celanese, which still operates it, in 1999 for an undisclosed price. At the time, Old World sought its own supply of ethylene glycol for its Peak brand antifreeze as suppliers such as Dow Chemical and Union Carbide were consolidating. Old World founder Tom Hurvis says the sale ...
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