Thai chemicals producer Indorama Ventures (IVL) has entered into a definitive agreement to acquire Glanzstoff Group, a major European manufacturer of tyre cord fabrics and single-end-cords (SEC) for high performance tyre applications.
Glanzstoff offers a broad range of solutions in 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.
Aloke Lohia, Group CEO of Indorama Ventures says the acquisition 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.
IVL entered 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 sizeable expansion of its tire-cord manufacturing line at Performance Fibers in Kaiping, China in January. On a pro forma basis, the combined revenue of PHP Fibers, Performance Fibers and Glanzstoff in 2016 was $602 million. On an all-inclusive basis, the HVA segment of IVL achieved sales revenue of over $2 billion in 2016.
Lohia says the company continues 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 the footprint beyond polyester and nylon 6.6 by entering into rayon technology. It 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.
