Indorama Ventures (IVL), a Thailand-based global chemical producer, announced it has completed the acquisition of UTT Beteiligungsgesellschaft mbH (UTT), one of the leading suppliers of airbag fabrics, with manufacturing sites in Germany and Mexico and a combined capacity to produce around 70 million square meters of fabrics per year. UTT also produces other highly specialized solutions in the field of technical textiles.
The acquisition of UTT reinforces IVL’s position as one of the largest suppliers of airbag yarns and textiles. This move further accelerates IVL’s growth momentum in the automotive sector by bringing together a complementary product portfolio since it now can offer a wider choice to its customers from yarns to fabrics.
In addition, this acquisition will also create opportunities for cost synergies and operational improvements, said in a statement Aloke Lohia, Group CEO. The financial terms of the deal were not disclosed.
“I am excited to bring UTT to the IVL family. This acquisition represents the continuation of our transformation journey to create a strong platform for sustainable growth. We can now capture the broader, global market opportunity and continue to elevate our success in the airbag market,” he said. “With our scale and capabilities in automotive safety, we look forward to working together to seize this opportunity for the benefit of all stakeholders.”
The UTT Mexican facility started operations in 2011 at the municipality of Huejotzingo, Puebla, although it was officially inaugurated in January 2012. The facility supplies fabric for airbags for European, Central and North American markets.
This is Indorama’s second acquisition in Mexico in the field of technical textiles in recent years. In 2017, the company also announced the acquisition of DuraFiber Technologies México Operations, S. A. DE C. V. (DFT), as part of the strategy to pursue growth opportunities in the high value-added automotive segment.
DuraFiber Technologies is a leading Mexican producer of durable technical textiles. Its Queretaro plant in Mexico has a capacity to annually produce a total of 37,500 tons 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 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.
Indorama Ventures is one of the world’s 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. Indorama Ventures products serve major FMCG and automotive sectors, i.e. beverages, hygiene, personal care, tire and safety segments.