Aloke Lohia, IVL group CEO said that, “Brazil, with its large spinning industry is a natural place for the textile industry to enjoy long-term growth due to its location and large population,” ,“We intend to support the local spinning industry with a commitment to supply high-quality fibers to blend with cotton and reduce dependence on imports.”

IVL reports the acquisition gives the company a fiber footprint in Brazil, and is located close to IVL’s polyethylene terephthalate site and a third-party purified terephthalic acid site in Brazil. The transaction is expected to close during the fourth quarter and is subject to regulatory approvals.

Thailand-based Indorama Ventures Plc (IVL) has entered into an agreement to purchase polyester staple fiber producer M&G Fibras Brasil. The plant has a polymerization capacity of 75,000 metric tons per year.