From the Sector

Indorama Ventures Public Company Limited (IVL), a world-class sustainable chemical company, introduced the first independent Sustainable Development Goals (SDGs) Report developed by the private sector in Thailand. The report provides details of the company’s sustainability strategy, aligned with the United Nation’s SDGs.

Renaud Meyer, UN Development Programme (UNDP) Resident Representative to Thailand, said, “We support countries in achieving the UN Sustainable Development Goals through integrated solutions. Achieving the goals at global level requires the partnership of governments, private sector, civil society and citizens alike to make sure we leave a better planet for future generations. The Sustainable Development Goals Report developed by the private sector is one way to urge more constructive collaboration among sectors.”  

The report presents IVL’s progress in achieving the UN Sustainable Development Goals. The company outlined five focus areas for contributing to the SDGs: Recycling and the Circular Economy, Climate Change and Energy, Environmental Stewardship, Health Safety and Well-being, and CSR and Collaborations. IVL believes it can have the greatest impact on these areas while also growing its business and bringing about constructive change. Activities in these five areas help IVL align with 13 of the 17 SDGs, totaling 39 targets.

Yash Lohia, Chief Sustainability Officer at Indorama Ventures, said, “Businesses can make a significant contribution to achieving the UN Sustainable Development Goals. IVL, as a responsible industry leader, is committed to contributing to the SDGs and addressing the world's environmental and economic concerns. We need to be accountable to our stakeholders, including our 25,000 employees and their families, our customers and industry partners. Furthermore, we believe that complying with the SDGs will provide us with considerable business prospects.

Avgol, an Indorama Ventures company and manufacturer of high-performance nonwoven fabric solutions, will be showcasing its latest work in biotransformation technology for polyolefin fibers and nonwoven fabrics at this year’s Hygienix™ event.

Nick Carter, Vice President, Nonwovens Marketing at Avgol, will be a guest speaker at the event, giving a presentation alongside Dr. DeeAnn Nelson, R&D and Innovation Manager with Avgol in North America, on ‘Biotransformation Technology in Polyolefin Fibers and Nonwoven Fabrics, Focus on Fugitive Used Articles’. “Today, the word “sustainability” does not have a unified meaning in the industries we serve,” said Nick. “Perform a regional analysis on any given customer or consumer, delve into a legislative body or advocacy group’s positioning and you will find each are likely to use the word ‘sustainable’ with varying interpretations, implementations, and implications.

The Avgol presentation, part of the Product & Process Innovation in AHPs series, will take place at 2pm on Tuesday, November 16.

From their base at the tabletop event, Nick and the Avgol team will be discussing the global challenge of eliminating incineration, chemical treatment, landfill, dumping and, in particular, fugitive material pollution from non-woven products.

“Following our recent success at Index 20, we will be sharing insight to our research and development strategy with Hygienix attendees, addressing the degradation performance of our products and the path forward for the industry in terms of the use of new bio-colorants, biosurfactants and new technologies. Of course, we will also be demonstrating our latest Forward Innovative Thinking (FITTM) range of hygiene materials too, including natureFITTM”, says Nick Carter.

natureFIT™ is the newest innovation in the Avgol™ technology platform, designed to imbue nonwoven fabrics with additional qualities and benefits that anticipate the shifting demands of the consumer-led retail space. The suite of fabric solutions is focused on replacing elements of spun melt fabric design, where possible, with natural alternatives. The advanced technology affords product designers a significant reduction in polymer consumption to reduce environmental impact while simultaneously enhancing softness and conformability.

Hygienix™ runs from 15 – 18 November 2021 at the Westin Kierland Resort in Scottsdale, Arizona, USA.

Indorama Ventures Public Company Limited issued a THB 10 billion triple-tranche Sustainability-Linked Bond, showcasing the company’s long-standing commitment to sustainable growth. It is the largest SLB issued in Thailand and the first offered to both institutions and high-net-worth investors.

The bond is part of IVL’s financing strategy across a range of instruments linked to the company’s sustainability targets. It is aligned with internationally accepted standards including International Capital Markets Association’s (ICMA) Sustainability-Linked Bond Principles and the Loan Market Association’s (LMA) Sustainability Linked Loan Principles.

The SLB is linked to IVL’s performance of reducing GHG emissions intensity by 10% by 2025 (from a 2020 base), increasing recycling of PET bale input to 750,000 tons per year by 2025, and achieving 25% renewable electricity consumption in 2030.

The triple-tranche structure includes 5-, 7-, and 10.5-year tenors, offering coupons of 2.48%, 3.00% and 3.60% per year respectively, targeting asset managers, commercial banks, insurance companies, cooperatives and high-net-worth individuals. With the orderbook peaking at over THB 17.8 billion due to strong interest in the sustainability-linked instrument, oversubscription was around 3x over the planned issuance amount of THB 6 billion with a green shoe option of THB 4 billion. In view of the strong orderbook from the investors, the company decided to exercise the green shoe option and increased the issuance to THB 10 billion, setting a new benchmark as the largest SLB transaction in Thailand. IVL appointed Bangkok Bank, Kasikorn Bank, Krungthai Bank, Siam Commercial Bank, and The Hongkong and Shanghai Banking Corporation Limited, Bangkok Branch as arrangers and bookrunners for the transaction.

On 23 September 2021, the bond was assigned an AA- rating and a “stable” outlook by TRIS Rating following a strong recovery of petrochemicals and derivatives and IVL’s growing profitability.

Under the terms, all tranches must purchase Energy Attribute Certificates (EAC) or voluntary carbon offsets in the event of failure to meet the sustainability performance targets (SPT). The testing dates for tenors with a maturity of 5 and 7 years are 31 December 2025, and 31 December 2030 for the 10.5-year tenor. SPT performance will be independently verified upon the testing dates.Proceeds for the issuance will be used to finance IVL’s corporate working capital and refinance existing debt.

In recent years, IVL secured loans linked to improvements in the company’s sustainability performance as a global leader in environmental, social and governance (ESG) integration. These included Thailand’s first Green Loan of USD 200 million and EUR 200 million from Japan’s Mizuho Bank, Thailand’s first cross-border Sustainability-Linked Ninja Loan worth USD 225 million from 16 institutions in Japan and a Blue Loan of USD 300 million arranged by International Finance Corporation and funded by Asian Development Bank and DEG.

• IVL is celebrating a decade of PET recycling and carbon reduction milestones
• Over 10 years, IVL has achieved a 100x increase in recycled PET

Indorama Ventures Public Company Limited (IVL), a world-class sustainable chemical company, launches its 10th annual Sustainability Report and a video celebrating a decade of ambitious PET recycling and carbon reduction milestones. The company is committed to intensifying its drive towards ending plastic waste and a more circular economy in the decade ahead.

Since its first Sustainability Report in 2011, IVL has grown its sustainability initiatives through the 3Ps – People, Planet and Prosperity. From the baseline in 2013, the company achieved a 10% reduction in GHG intensity, 4% in energy intensity and 7% in water intensity. It also increased total waste diverted from landfill from 48% to 84% in 2020. Moreover, IVL’s global PET recycling capacity has improved almost 100 times from 3,576 tons per year in 2011 – the first entry of IVL to the PET recycling business – to more than 330,000 tons per year in the second quarter of 2021.

Celebrating 10 years of sustainability reporting
Throughout the decade, IVL has voluntarily adopted international standards for its sustainability reports to drive benefits for the environment, society and economy. The effort resulted in recognition by world-class sustainability ratings agencies such as the Dow Jones Sustainability Indices (DJSI) and the Morgan Stanley Capital International (MSCI).

Recent Sustainability Reports have featured business cases and special situations such as COVID-19. In 2016, IVL was the first Thailand-based company to introduce an additional, shorter version of the report called the Sustainability Report Executive Summary. This year, IVL has made further improvements with an interactive approach, including links to videos and shortcuts to highlighted articles. As a global company operating in 33 countries, the report is available in 15 languages.

On track to recycle 50 billion bottles per year by 2025
In 2020 IVL recycled 10.1 billion PET bottles and is on track to recycle 50 billion bottles per year by 2025. The company’s global reach and leadership position as the world’s largest PET and recycled PET resin producer allow IVL to leverage a closed-loop system. In 2020 IVL invested in three additional recycling facilities and recently acquired CarbonLite’s recycling assets in Texas.

Avgol®, an Indorama Ventures company and manufacturer of high performance nonwoven fabric solutions, will be showcasing its latest work in biotransformation technology for polyolefin fibers and nonwoven fabrics at this year’s IndexTM 20 exhibition.
Avgol will be discussing the global challenge of eliminating incineration, landfill, dumping and, in particular, fugitive material pollution from non-woven products.

natureFIT™ is the newest innovation in the Avgol technology platform designed to imbue nonwoven fabrics with additional qualities and benefits that anticipate the shifting demands of the consumer-led retail space. The suite of fabric solutions is focused on replacing elements of spun melt fabric design, where possible, with natural alternatives. The advanced technology affords product designers a significant reduction in polymer consumption to reduce environmental impact while simultaneously enhancing softness and conformability.

The Index 20 expo will be held on 19 – 22nd October 2021 at Palexpo Geneva.

• Goal: Creating a unique portfolio in high-value surfactants

Indorama Ventures Public Company Limited (IVL), a global chemicals producer, today announced it agreed to acquire Brazil-based Oxiteno S.A. Indústria e Comércio, a subsidiary of Ultrapar Participações S.A. The acquisition gives IVL a unique portfolio in high-value surfactants and significantly extends its existing Integrated Oxides and Derivatives (IOD) business.

IVL will purchase Oxiteno for US$1.3 billion (subject to adjustments at closing), with a deferred payment of $150 million in 2024. The transaction is subject to customary conditions to closing, including approval of relevant regulatory authorities. The transaction is expected to close in Q1 2022 and will be earnings accretive immediately. Financing is secured through deferred payment, using existing extra cash on our balance sheet, free cash flow generated from existing businesses, short term loans against working capital and the balance as long-term debt.

Oxiteno is a leading integrated surfactants producer, catering to highly attractive end-use markets in LATAM. The acquisition brings an excellent management team, world-class expertise in green chemistry innovation, strong customer relationships in Brazil, Uruguay and Mexico, and substantial growth potential in attractive end markets, including the U.S. through a new facility in Pasadena, Texas. Oxiteno has a strong commitment to environmental governance, and its focus on lowering greenhouse gas emissions will also enhance IVL’s ESG credentials.

• New high-capacity line enables diversification to meet growing demand

Avgol, a global leader in the manufacture of high performance non-woven fabric solutions, has announced it is investing in a new high-speed, high-capacity flexible multiple beam production line at its facility in Uzlovaya, Russia.

“The addition of this new line enables us to have greater production capacity for growing regional markets and support the release of new Avgol technologies,” said Tommi Bjornman, CEO of Avgol.
“Serving the growing baby diaper, adult incontinence and feminine hygiene markets along with satisfying sustained demand for meltblown filtration and medical materials, this investment enables Avgol to deliver an improved degree of service across the entire area while consolidating and strengthening our existing position,” he said.

Avgol, an Indorama Ventures Limited company, leads the global hygiene market with the most comprehensive range of ultra-lightweight spun-melt nonwoven fabrics. This new line at the company’s Uzlovaya facility, in the Tula Oblast region of Russia, will see Avgol investing in new Reicofil 5 (RF5) technology. The third line for this location will include biocomponent and corresponding high-loft capabilities thus producing materials for applications that meet the needs of upper tier products for Hygiene customers.

As part of the investment, Avgol is including new capacity for meltblown production with a dedicated line, ensuring a continuous supply of this critical material for the region. One other aspect of the investment, and a new inhouse capability for Avgol, includes the addition of cutting-edge lamination capabilities. These capabilities will allow Avgol to offer enhanced performance products into the existing markets the company serves, as well as allowing the company to explore new opportunities in other markets. “The RF5 line, meltblown line and lamination capabilities will provide us a powerful set of platforms as a base from which to provide high-value products for our customers,” said Mr. Bjornman.  “It will enable us to further diversify the Avgol innovation portfolio while remaining true to our roots.”

Mr. Bjornman further commented that the investment will also significantly support further sustainable product development in Avgol, under its innovative FIT™ (Forward Innovative Thinking) strategy. “Avgol is committed to the future of nonwoven fabrics with a particular focus on bringing polyolefins forward as viable resins in single use articles,” he said. “We are excited to bring new assets, new capabilities, and new technologies that will challenge customer expectations of the nonwoven fabric industry.” This investment will move the Russian production facility to the second largest site for Avgol (the largest facility remains the Mocksville site in North Carolina, USA).

Trevira CEO Klaus Holz and Trevira’s parent company, Indorama Ventures, will continue to work together for a further three years following a mutually agreed renewal of Holz’s contract. The contract was due to expire at the end of this year, but it has now been extended until the end of 2022. Holz took up his position as a managing director of Trevira at the beginning of 2011, and has been sole managing director of Trevira GmbH since 2013.

  “Trevira with its renowned brand is an integral part within our specialty portfolio strategy”, explains Mr. Uday Gill, CEO of IVL’s Fibres Business. “We see further growth potential especially in the hygiene and automotive segments, as well as in the high-end home textiles business.”

For Trevira CEO Klaus Holz the takeover of the remaining Sinterama share is just the last consequent step which documents the long-term commitment of the parent company. „For Trevira and its customers and suppliers, this consolidation reflects Indorama Ventures’ commitment to investing in the company and ensuring a continued strong and reliable partnership. IVL has supported us from the very beginning in all our activities and has integrated us in its global network. We cooperate in joint projects and benefit significantly from the synergies within the IVL group. We would like to thank the Sinterama team for their ongoing support in ensuring a seamless transition.“