Thailand-based Indorama Ventures acquires DuraFiber plant in Queretaro
Indorama Ventures Public Company Limited (IVL), a Thailand-based global chemical producer, announced that it has entered into an agreement to acquire DuraFiber Technologies México Operations, S. A. DE C. V. (DFT), in a move to expand its reach in the automotive sector on the back of rising demand for lightweight, high-performance materials.
DFT Mexico is a leading producer of durable technical textiles for industrial, tire reinforcement, and specialty applications globally. The facility is the only domestic tire cord fabric producer in Mexico with products approved by major global tire companies.
As IVL tries to diversify into higher value-added products, the company saw in the automotive industry a “key growth driver,” CEO Aloke Lohia said in a statement.
The manufacturing plant, located in Queretaro, has a capacity to produce a total of 37,500 tons per year 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. It sources material from Indorama’s PET plant, located on the same premises as DuraFiber’s factory.
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, subject to the usual regulatory approvals (including the approval by the Mexican Antitrust Commission). The financial terms of the acquisition were not disclosed.
Concurrently with this planned acquisition in Mexico, IVL has agreed to also acquire DuraFiber Longlaville, France having a capacity of 35,000 tons per year, again subject to a definitive agreement, the relevant regulatory approvals and employee approval.
Indorama is the world’s largest maker of PET resin used to make plastic bottles. It has been aggressively adding tire material manufacturers to its portfolio, namely Performance Fibers China in 2015 and Glanzstoff, a European producer, earlier this year.