Indorama Ventures, the world’s largest producer of polyethylene terephthalate (PET), is making plans to resume work on one in the United States. This important project previously was canceled. The block-long project is worth more than $2 billion. It had been delayed before due to confusion over international trade policy. Chief executive Aloke Lohia said the company would watch tariff discussions between the United States and other countries “very closely.” It will allow them to judge the likelihood that the restart of their big bet will occur.
In 2024, Indorama Ventures has earned $15.54 billion in revenue. Most surprisingly, an eye-popping $7.7 billion of that was coming from the U.S. and the rest of the Americas. This region is a key ingredient in the company’s growth strategy. It seeks to improve its competitive positioning and benefit from the recent shifts in U.S. tariff policy enacted under former President Donald Trump.
The stopped factory is part of a larger pattern of Indorama Ventures’ actions in North America. The company has joint-venture, assembly, or contract production facilities located in the U.S., Thailand, China, Germany and 27 other countries. This gigantic global footprint is what really allows it to leverage its capabilities effectively. The possible restart of the factory could enhance its capabilities to meet the rising demand for PET and other plastic materials in key markets.
Lohia said he was hopeful about the company’s prospects. He warned that the approach should be careful and measured, given that negotiations were proceeding. “We want to ensure that we make informed decisions that align with market conditions and tariff developments,” he stated. Indorama Ventures’ response is a smart move. They’re looking to take advantage of possible benefits from tariff policies that have come out on the side of encouraging domestic production.
As discussed previously, PET in particular is a keystone resin, making up an essential building block in industries from packaging to textiles to consumer goods. Indorama Ventures is committed to staying on top as the world’s largest producer of PET. Along with this initiative, the company continues to expand its capabilities to recycle other plastic materials. The company’s successful, diverse product portfolio covers all customer bases from budget-conscious to the premium consumer. Perhaps more importantly, it allows the state to quickly pivot to changing market conditions.