Kasikorn Securities (KS) wrote that Indorama Ventures Public Company Limited (SET: IVL) is assessing opportunities to expand its production capacity in the Middle East. In an interview with Bloomberg, Mr. Aloke Lohia, Group CEO of IVL, stated that the ongoing trend of industry consolidation is reducing competition and presenting new opportunities in the region.
However, he did not specify details such as potential locations, the size of investment, or the expected timeline for these expansion plans.
Currently, IVL operates factories with a combined production capacity of approximately 17 million tonnes, spread across 31 countries worldwide. The company’s existing production facilities in the Middle East—which include assets in Israel, Turkey, and Egypt—account for around 4.7% of its total capacity.
According to Kasikorn, this news could signal further investment opportunities for IVL, particularly as the company continues to strengthen its balance sheet. The firm’s net debt-to-equity ratio has declined to 1.56x as of the second quarter of 2026, significantly below its internal cap of 2x.
In the short term, however, the integrated PET margin trend remains a concern. In the third quarter to date, the margin has softened to around $80–$110 per tonne, compared to $208 per tonne previously. This contraction could exert pressure on the company’s operating performance in the near future.
As a result, Kasikorn maintains a ‘Hold’ recommendation on IVL, with a target price of THB 21.40 per share.
