Bangkok – Indorama Ventures Public Co. Ltd (IVL) has signed an agreement to acquire Austrian tire cord manufacturer Glanzstoff Group, IVL announced 17 April.
Financial details of the transaction were not disclosed, but the deal is expected to be completed in the second quarter of 2017 subject to regulatory approvals.
With plants in Luxembourg, Italy and the Czech Republic, Glanzstoff manufactures cord fabrics and single-end-cords (SECs) for high-performance tire applications. Its products are based on rayon, aramid, polyamide 6,6 and polyester.
The Austrian company also supplies hybrid filament yarns for non-tire automotive applications.
IVL entered the tire cord business following the acquisition of PHP Fibers in 2014. Thereafter, it acquired Performance Fibers in 2015 and announced a sizeable expansion of that company’s tire-cord manufacturing line in Kaiping, China in January.
In 2016, combined revenue from PHP Fibers, Performance Fibers and Glanzstoff was $602 million (€565 million).
“The acquisition of Glanzstoff… enhances the company's value proposition and provides collaborative opportunities with the global automotive tire industry, including those for autonomous and electric vehicles,” said Indorama group CEO Aloke Lohia – noting IVL’s “strong presence” in headliner yarns, acoustic fibers and tire-cord fabrics.
“The Glanzstoff acquisition is a strategic fit to help grow this portfolio,” Lohia added. “The Glanzstoff platform will expand our footprint beyond polyester and [polyamide] 6,6 by entering into rayon technology.”