Thailand-based chemical producer Indorama Ventures Plc (IVL) expects its revenue to rise by 5-10% in fiscal 2023, driven by growing demand, despite the prospects of a global recession.
The company earned US$18.8 billion in fiscal 2022.
Aloke Lohia, group chief executive of IVL, attributed the revenue growth to demand for essential chemical products, population growth, and new investment projects.
"IVL sees opportunities in the global chemical market, driven by consumers' demand," he said.
The company is aware of the risk of a global recession but believes it will not greatly affect its businesses because IVL focuses on making necessary chemical products which are needed in people's daily lives.
However, amid signs of a Thai export slowdown, IVL will closely monitor economic situations which may turn negative as a result of a recession.
IVL currently has 147 chemical factories in 35 countries.
In fiscal 2022, it saw revenue increase by 28% year-on-year to $18.8 billion, with cash flow rising by 111% to $2.2 billion.
The company emphasises investments that support both organic growth and merger and acquisition (M&A) plans.
It allocated $2.4 billion for the construction of an integrated PTA-PET production facility in Corpus Christi, Texas.
The company also plans to carry out a PHP fibre project in Mexico and a fibre and polyethylene terephthalate (PET) project in India by 2030.
According to Mr Lohia, the company is in talks with foreign firms over 5-6 M&A deals.
He said M&A projects will play a key role in doubling revenue for IVL within five years.
In Thailand, IVL plans to build a new factory to recycle PET products on 130 rai of land in Saraburi. The factory's recycling capacity is 25,000 tonnes of scrap PET a year.
It will also install a solar power generation facility, with 3 megawatts in capacity, at this recycling plant in line with a carbon neutrality campaign.
"This project requires around $50 million for investment, excluding the budget for solar power development," said Mr Lohia.
IVL currently runs a PET recycling plant in Nakhon Pathom, with a capacity of 34,000 tonnes a year.
