Shearman Logo

News Jan 14, 2014

Shearman & Sterling Advises Indorama Ventures on Joint Venture Agreement to Build Aromatics Plant in Abu Dhabi

Shearman & Sterling is advising Indorama Ventures Public Company Limited on its joint venture with Abu Dhabi National Chemicals Company (ChemaWEyaat) to build an Aromatics plant in Abu Dhabi. The joint venture agreement was signed on 26 December 2013 and provides for Indorama Ventures to acquire a 49% interest in a joint venture company being formed to develop, own and operate the Aromatics plant, known as "Tacaamol."

Iain Elder, the Shearman & Sterling partner in Abu Dhabi who led the deal, said: "The Tacaamol plant is to be part of Madinat Chemaweyaat, known locally as Chemicals City. Investment there could eventually exceed 20 billion US dollars, making it one of the biggest chemical complexes in the world. We are delighted to have had the opportunity to be involved with the first such investment."

Indorama Ventures Public Company Limited, listed in Thailand, is a global leader in the polyester value chain with a strong global network and manufacturing across Asia, Africa, Europe and North America. Its products serve major brand owners in diversified end use markets, including food, beverages, personal and home care, health care, automotives, textile and industrial segments. The company's main products are PTA, EO/EG, PET and fibre, which are distributed across the world. IVL has approximately 9,000 employees worldwide and it achieved last twelve months consolidated revenue ending Q3 2013 of US$7.3 billion.

The Shearman & Sterling team was led by Iain Elder (Abu Dhabi-Project Development & Finance) and senior associate Dan Feldman (Abu Dhabi-Project Development & Finance).