Indorama Ventures To Close PTA Plant In Montréal-Est

Indorama Ventures’ Combined PET business segment has announced plans to discontinue operations at its Purified Terephthalic Acid (PTA) plant in Montréal-Est, Montral, Canada with preparations for the closure set to begin in September 2024. This decision follows significant shifts in the polyester industry, notably due to new constructions and ongoing overcapacity in China, which have placed increased pressure on western producers.

The company conducted a strategic review of its portfolio, including asset optimization to maintain cost competitiveness. Despite the plant closure, customers will continue to receive uninterrupted service, supported by the company’s production assets in the US and its extensive global operations.

Muthukumar Paramasivam, President and Co-leader of the Combined PET Segment at Indorama Ventures, expressed his regret over the decision: “We are deeply saddened to announce this closure. It was an extremely difficult decision, made after careful consideration of the challenging market conditions. We extend our heartfelt thanks to our Montréal-based employees for their dedication and loyal service since we acquired this asset in 2015. The management team is very mindful of the impact of this decision, and we are committed to mitigating the adverse effects on our employees and the local community.”

Deputy Group CEO DK Agarwal emphasized the company’s commitment to supporting affected employees and minimizing the impact on local suppliers: “We are dedicated to offering professional support to our employees, including redeployment opportunities within the Group where possible. Additionally, we will work closely with local suppliers to minimize disruptions to their operations and assure our customers that their supplies and services will remain unaffected.”