BANGKOK (Dec. 29, 1 p.m. ET) -- Thailand-based Indorama Ventures Public Co. Ltd. said it will challenge a recent court case filed by Eastman Chemical Co. against Indorama subsidiaries relating to a technology licensing agreement.

“IVL believe that these claims are without merit and intend to vigorously defend themselves against these claims,” IVL said in a statement to the Stock Exchange of Thailand.

Kingsport, Tenn.-based Eastman’s lawsuit alleges that Indorama has made unauthorized use of Eastman’s Integrex-brand PET resin manufacturing technology in the U.S., Europe and Thailand.

Eastman filed the complaint on Dec. 18 in U.S. District Court in Wilmington, Del., against AlphaPet Inc., Indorama Polymers Rotterdam BV, Indorama Polymers Workington BV, Indorama Holding Rotterdam BV and Indorama Polymers Public Co. Ltd.

Eastman alleges technology license infringement, especially with the pending start of AlphaPet’s second PET line in January 2010.

The licensing agreement between the companies precludes the European defendants from using Eastman’s IntegRex PET technology, and further prevents them from accessing the knowledge of former Eastman employees regarding such technology.

The employees joined IVL when its European subsidiaries acquired Eastman’s northwest European PET and purified terephthalic acid business in March 2008.

IVL has capacity to make 1.498 million metric tons per year of PET throughout its Asian, European and U.S. operations. When the second Alphapet line starts operating, it will account for 28.8 percent of Alphapet’s total capacity of 432,000 metric tons per year.

Meanwhile, Indorama said it would be able to operate its European PET plants by using alternative conventional technologies for a relatively low cost, and implement the change with minimal or no disruption to its operations.

Meanwhile, AlphaPet also is facing litigation from a contractor, H&M Industrial Services Inc., related to work that H&M did installation piping, hangers and supports for AlphaPet’s new PET resin facility in Decatur, Ala.

H&M has filed claims for $10 million, while AlphaPet has counter claimed $9 million, alleging that the contractor had abandoned the work.

Separately, Indorama Polymers Public Co. Ltd. (IRP) said it will continue to seek opportunities in Europe, where PET demand continues to outstrip supply.

“Europe, despite the economic slowdown, continues to see imports of about 1 million tons per annum, and this is a gap we would want to fill,” Dilip Kumar Agarwal, CEO of IRP, said in a statement.

Agarwal said IRP has various options that the company may want to undertake as demand in the European Union stands at around 3.1 million tons per annum while supply there is just 2.1 million tons.

This, coupled with various sanctions and anti-dumping measures, has created a shortage in the market, he said.

Agarwal said IRP is interested in investing in northern Europe and is currently looking at, among others, a large scale PET plant using the latest generation technology. He strongly believes that only PET plants that are integrated with PTA plants have a future.

Meanwhile, IVL has launched a share and business restructuring exercise in Thailand involving its 69.3 percent owned IRP. It has made an offer to acquire all outstanding shares. It involves some 424.48 million IRP shares with the offer closing by Feb. 1.

Aloke Lohia, IVL’s Group CEO, said the shareholding and business restructuring plan will help eliminate potential conflicts of interest among IVL, IRP and other entities within IVL’s group.

Indorama Polymers is part of Indorama Group, an Indonesian conglomerate owned by the Lohia family. The firm operates manufacturing sites for textiles and related industries in Indonesia, Sri Lanka, Thailand, Turkey and India.

IVL also is planning an initial public offering in early 2010 in Thailand after the share acquisition.

By Gurdip Singh | PLASTICS NEWS CORRESPONDENT
Posted December 29, 2009

Source: www.plasticsnews.com