Indorama Acquires Brazilian Oxiteno for $1.3bn

Oleochem Analytics – Indorama, a global petrochemicals producer based in Thailand, announced on Aug. 16 it has agreed to acquire Brazil-based Oxiteno, a subsidiary of Ultrapar Participações for $1.3bn with a deferred payment of $150 million in 2024.

The acquisition, the latest addition in a number of acquisitions and projects, gives Indorama a portfolio in surfactants and significantly extends its existing integrated oxides and derivatives (IOD) business, the company said. Indorama is one of the region’s major producers of ethylene oxide (EO), a chemical also used to make surfactants. The transaction is expected to close in Q1 2022.

Oxiteno is a large integrated surfactants producer in Latin America with plants in Brazil, Mexico, the US and Uruguay. The company’s products include EO, alcohol ethoxylates, surfactants and esters. 

Oxiteno Uruguay’s production capacity is 81,000 mt/year, and production includes sulfonate and sulfate surfactants for the home and personal care industries, as well as products for the leather industry, according to financial documents filed with the US Securities and Exchange Commission (SEC).

Oxiteno produces about 120,000-125,000 mt/year at its US plant is in Pasadena, Texas. The plant opened in 2018 and is home to the world’s most advanced alkoxylation technology with an annual installed production capacity of 170,000 mt/year, according to Oxiteno.

Oxiteno’s Mexican plants are in Coatzacoalcos, Veracruz state and Guadalajara, Jalisco state. Its Brazilian plants are in Camacari, Bahia state; Maua, Santo Andre and Suzano, Sao Paulo state; and Triunfo, Rio Grande do Sul state.

“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 US through a new facility in Pasadena, Texas,” Indorama said.

Through the acquisition, Indorama said it will be positioned to assume a unique market position in technologies in home & personal care, agrochemicals, coatings and oil & gas markets.

“The surfactants market has seen consistent growth over the last decade, driven by trends in population growth, urbanization and increasing hygiene awareness amid the Covid-19 pandemic,” Indorama added.

Indorama expects that through the acquisition the extended footprint has potential to drive expansion in Europe and Asia.

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