Indorama Considers Restarting U.S. PET Plant as Tariff Shift Signals Supply Realignment for Beauty Packaging
Indorama Ventures is reviewing plans to resume construction of a US$2.3 billion PET production facility in Texas, paused since 2023, as new U.S. trade policies create conditions favourable to local sourcing of key materials used in cosmetics and personal care packaging. The post Indorama Considers Restarting U.S. PET Plant as Tariff Shift Signals Supply Realignment for Beauty Packaging appeared first on Global Cosmetics News.
THE WHAT? Indorama Ventures is reviewing plans to resume construction of a US$2.3 billion PET production facility in Texas, paused since 2023, as new U.S. trade policies create conditions favourable to local sourcing of key materials used in cosmetics and personal care packaging.
THE DETAILS Indorama Ventures, a leading global producer of polyethylene terephthalate (PET), said it may resume work on an 80%-complete facility in Texas initially halted due to cost pressures and labour shortages. The site, when operational, would have capacity to produce 1.1 million tonnes of PET and 1.3 million tonnes of purified terephthalic acid (PTA) annually—key raw materials in plastic containers, tubes, and bottles widely used in the personal care and beauty sector.
The shift follows the announcement of proposed tariffs by former President Donald Trump, including a 25% levy on aluminum, which could drive beauty and personal care brands away from metal packaging toward PET-based alternatives.
Originally launched via a joint venture in 2018, the project stalled in September 2023 despite US$1.7 billion already invested. The remaining US$600 million could be deployed if trade policy signals long-term barriers to imports, especially from China, a major PET exporter.
THE WHY? With PET packaging widely used across skin care, hair care, body wash and fragrance categories, any supply disruptions or cost shifts in key raw materials directly affect beauty brands’ sourcing strategies. A restart of domestic U.S. PET production could reduce reliance on overseas suppliers and strengthen North American PET supply chains. The potential revival also signals increased upstream investment in beauty packaging inputs in anticipation of reshoring and tariff-driven supply realignment.
The post Indorama Considers Restarting U.S. PET Plant as Tariff Shift Signals Supply Realignment for Beauty Packaging appeared first on Global Cosmetics News.
