Indorama Ventures Announces Acquisition of Europe’s Leading Tire Cord Manufacturer
Indorama Ventures Public Company Limited (IVL), a global chemical producer, today announced that it has entered into a definitive agreement to acquire Glanzstoff Group. Glanzstoff is a major European manufacturer of tire cord fabrics and single-end-cords (SEC) for high performance tire applications. This transaction is expected to close during the second quarter of 2017, subject to regulatory approval.
Glanzstoff offers a broad range of solutions in the tire cord fabrics and single-end-cords in high performance rayon, aramid, Nylon 6.6 and polyester in addition to hybrid filament yarns for the high growth and high performance automotive applications. Glanzstoff is Europe’s largest converter for tire cord fabrics and a global leader in SEC and is vertically integrated into high tenacity Rayon technology. It has manufacturing sites in Luxembourg, Italy and the Czech Republic.
Commenting on this acquisition, Aloke Lohia Group CEO of Indorama Ventures, said, “The acquisition of Glanzstoff provides a unique opportunity for Indorama Ventures to consolidate its leadership position in the tire cord business and strengthens our high value-added (HVA) portfolio. It enhances the company’s value proposition and provides collaborative opportunities with the global automotive tire industry, including those for autonomous and electric vehicles. IVL is a leading global specialty-fibers solution provider with strong presence in headliner yarns, acoustic fibers and tire-cord fabrics and the Glanzstoff acquisition is a strategic fit to help grow this portfolio”.
IVL entered into the high-growth tire cord business following the acquisition of PHP Fibers in 2014. Thereafter, it acquired Performance Fibers in 2015 and created a global scale as a result of these acquisitions. The company continues to invest and announced a sizeable expansion of its tire-cord manufacturing line at Performance Fibers in Kaiping, China in January of 2017. On a pro forma basis, the combined revenue of PHP Fibers, Performance Fibers and Glanzstoff in 2016 was US$ 602 million. On an all-inclusive basis, the HVA segment of IVL achieved sales revenue of over US$ 2 billion in 2016.
“We continue to pursue a transformational journey to consolidate our leadership position and pursue profitable growth opportunities in the high value-added segment. The Glanzstoff platform will expand our footprint beyond Polyester and Nylon 6.6 by entering into Rayon technology. 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 in which we are present. We strive to be a world-class, high-growth company and will continue to explore opportunities to deliver earnings growth and enhanced value in a sustainable manner,” Mr. Lohia concluded.