The acquisition deal, whose terms have not been revealed, awaits regulatory approval.

The Montreal-based facility is the only PTA producing plant in Canada and is one of the three suppliers for the chemical in North America.

The production site has an annual capacity to supply around 600,000t.

The PTA facility derives feedstock paraxylene from an adjacent refinery via pipes. It is strategically built with easy rail access and water access through the St. Lawrence River.

The deal is line with Thailand-based Indorama’s strategy to expand its business into Canada.

Indorama Ventures Group CEO Aloke Lohia said: "This will be our inaugural entry into Canada.

"Cepsa Chimie Montréal provides us the unique opportunity to acquire assets that will consolidate our North American polyester value chain businesses for added feedstock security.

"The acquisition is in line with our announced strategy to expand in our core businesses, primarily in the West."

With the sale of the PTA business, Cepsa seeks to focus on higher growth petrochemical areas.

Cepsa Química is a wholly-owned affiliate of Cepsa Chimie Montréal, which is a joint entity formed by Cepsa and IQ Chimie.

Image: The Montreal-based facility is the only PTA producing plant in Canada. Photo: courtesy of Cepsa.