Indorama Acquires Brazil’s Oxitena

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Indorama Acquires Brazil’s Oxitena
Indorama Ventures’ Integrated Oxides and Derivatives is a leading chemical intermediates and surfactants producer. © ESB Professional

Indorama Ventures Public Co., a global chemicals producer based in Thailand, agreed to acquire Brazil-based Oxiteno S.A. Industria e Comercio for $1.3 billion, with a deferred $150 million payment in 2024. Oxiteno’s key products include surfactants; it also produces fatty acids, fatty alcohols, ethanolamines and brake fluids.

Subject to conditions, the transaction is expected to close in the second quarter of 2022. Oxiteno is a subsidiary of Ultrapar Participacoes S.A.

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According to Oxiteno’s website, applications for its fatty acids include use as chemical intermediates in production of surfactants and metal soaps, and in triethanolamines for lubricants and automotive greases. Its fatty alcohols are used in additives for lubricants. Its ethanolamines are chemical intermediates that are also widely used in production of lubricant additives.

“With Oxiteno, we are creating a global leader in surfactants,” IVL Group CEO Aloke Lohia said in a news release. Lohia noted the company has successfully integrated 50 acquisitions over the past 20 years.

Indorama said it expected Oxiteno’s 11 manufacturing plants, customers on four continents, and experienced management team to complement the footprint of its Integrated Oxides and Derivatives business in the United States and Latin America. Its five research and technology centers will add to Indorama’s innovation credentials in “green” chemistry.

Indorama Ventures’ Integrated Oxides and Derivatives is a leading chemical intermediates and surfactants producer with a diverse range of products in such markets as home and personal care, agrochemicals, oilfield technologies, fuel and lube additives and more.

In January 2020, Indorama Ventures completed its acquisition of Huntsman’s integrated oxides and derivative business, including surfactants, ethylene and ethylene derivatives, and propylene oxide and its derivatives. The operating sites for Indorama’s Integrated Oxides and Derivatives include a large flagship site on the U.S. Gulf Coast at Port Neches, as well as Chocolate Bayou, Dayton and Clear Lake in Texas; Lake Charles, Louisiana; Ankleshwar, India; and Botany, Australia.

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