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Fibres/​Yarns/​Fabrics

Indorama Ventures acquires DuraFiber Technologies

Complementary addition to IVL’s Automotive Segment further strengthens its leading position in US$ 10 billion automotive fibre market.

15th August 2017

Innovation in Textiles
 |  Bangkok

Transport/​Aerospace

DFT’s Queretaro plant in Mexico (co-sited with IVL Mexico) has a capacity to produce a total of 37,500 tonnes/ annum of PET High Modulus Low Shrinkage (PET HMLS), PET Heavy Denier Industrial (PET HDI) and Nylon 6 fully-integrated into tire cord fabrics and industrial and industrial textiles. Its products are used in a wide range of applications including reinforcement for conveyor belts, hoses, single-ply roofing, tents, automotive airbags, seat belts, safety harnesses and ropes.

The transaction is expected to be completed in the third quarter of 2017. Concurrently with this planned acquisition in Mexico, IVL has agreed to also acquire DuraFiber Longlaville, France, having a capacity of 35,000 tonnes/annum.

“The acquisition of DuraFiber is strongly aligned with our strategy of pursuing accretive growth opportunities in the high value-added automotive segment. DuraFiber’s portfolio is a complementary fit with our current HVA tire cord fabric products in Europe and a strong fit with our existing PET site in Mexico. DuraFiber is a strong brand with recognized products with deep insights into the market combined with IVL’s global scale will enable us to better meet customers’ evolving needs,” said Aloke Lohia, Group CEO of Indorama Ventures.

Automotive segment    

The market is projected to have a growth rate around 6% CAGR in 2017-2021. DuraFiber is the sole domestic tire cord fabric producer in Mexico with products approved by major global tire companies.

“The automotive segment is a key growth driver in IVL’s HVA portfolio that will bring exciting developments to the Company. While PET is still an important backbone for the Company, HVA is now accounting for 50% of IVL’s core EBITDA. Our focus remains on delivering best-in-class propositions, while driving our global innovation agenda to strengthen the Company’s capabilities in the value chain where we are present. I am confident that with the transformational strategy to consolidate our leadership position in key businesses and markets, IVL delivers significant value to our shareholders,” concluded Mr Lohia.

Indorama Ventures       

Indorama Ventures, listed in Thailand, is one of the leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia, Europe and North America. The company’s portfolio comprises necessities and High Value-Added (HVA) categories of polymers, fibres, and packaging, selectively integrated with self-manufactured ethylene oxide/glycols and PTA where economical.

IVL products serve major FMCG and automotive sectors, i.e. beverages, hygiene, personal care, tire and safety segments.

www.indoramaventures.com

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