Global chemical producer Indorama Ventures (IVL) has entered into an agreement to acquire DuraFiber Technologies DFT México Operations, a producer of durable technical textiles for industrial, tire reinforcement and specialty applications.
DFT’s Querétaro plant in Mexico (co-sited with IVL Mexico) has an annual production capacity of 37,500 tons of polyethylene terephthalate high modulus low shrinkage (PET HMLS), PET heavy denier industrial and polyamide 6 fully integrated into tire cord fabrics and industrial textiles.
The company’s products are used in a wide range of applications, including reinforcement for conveyor belts, hoses, single-ply roofing, tents, automotive airbags, seatbelts, safety harnesses and ropes.
The transaction is expected to be completed in the third quarter of 2017, subject to the usual regulatory approvals, including approval by the Mexican Antitrust Commission.
Concurrently with this planned acquisition in Mexico, IVL has also agreed to acquire Longlaville DuraFiber Technologies, France, which has a capacity of 35,000 tons/year, again subject to a definitive agreement, relevant regulatory approvals and employee approval.
Aloke Lohia, IVL group chief executive officer, said: “The acquisition of DuraFiber is strongly aligned with our strategy of pursuing accretive growth opportunities in the high value-added (HVA) 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, [and] combined with IVL’s global scale will enable us to better meet customers’ evolving needs.”
DuraFiber is the sole domestic tire cord fabric producer in Mexico with products approved by major global tire companies. The market is projected to have a compound annual growth rate around 6% over the 2017-2021 period.
“The automotive segment is a key growth driver in IVL’s HVA portfolio that will bring exciting developments to the company,” said Lohia. “While PET is still an important backbone for the company, HVA is now accounting for 50% of IVL’s core EBITDA.”
For more information contact:
Aloke Lohia, Group Chief Executive Officer
Indorama Ventures PCL