Indorama Builds Second U.S. PET Plant

Indonesia’s Indorama Polymers plc plans to build a 650million-lb/yr PET plant in the U.S.

Indonesia’s Indorama Polymers plc plans to build a 650million-lb/yr PET plant in the U.S. Indorama’s StarPet, Inc. subsidiary already operates a 500-million-lb PET plant in Asheboro, N.C., which it acquired in 2004 from Tietex International Ltd. Though the location of the new plant has not been disclosed, the company is aiming for a late 2008 start-up. The U.S. PET market is already facing oversupply as a result of 20% growth in domestic resin capacity from new plants coming on stream. Says a source at one major PET supplier, “This is a 7- to 8-billion-lb market growing at an annual rate of 6% to 7%, so typically you need about 500 million lb of new capacity each year to meet demand. I think this new capacity can be handled by the market, which by that time may not be so oversupplied.”