Bangkok – Indorama Ventures Public Co. Ltd (IVL) has reached an agreement to acquire Czech tire cord and technical fabrics business Kordárna Plus a.s., IVL announced 29 June.
The acquisition from Jet Investment includes one production site in the Czech Republic and one in Slovakia, with a combined tire cord and technical fabrics production capacity of 50 kilotonnes per annum (ktpa), said the Thai petrochemicals company.
No further details on the transaction was disclosed.
With the acquisition, IVL claims, the company will become the biggest tire cord producer in Europe and second largest tire cords supplier globally.
Kordárna's portfolio of tire cord fabrics includes polyester, nylon 66, nylon 6, rayon, aramid and hybrids.
The transaction is expected to be completed during the second half of 2018, subject to regulatory approvals.
Tire cord fabrics (TCF) represent about 75% of Kordárna’s sales, with products supplied to customers in Europe, North America, South America and Asia.
IVL said it will integrate Kordárna within its existing operations in Europe. Post-acquisition, the company will have a total of 12 manufacturing sites for automotive fibres globally with 127ktpa capacity.
This acquisition represents the continuation of an IVL strategy to increase its presence in the high value-added automotive safety applications, said the company announcement.
“Kordárna is one of the most recognised and trusted brands in the tire industry and has huge potential together with our PHP, Performance Fibers and Glanzstoff businesses,” said Aloke Lohia, group CEO of Indorama Ventures.
Indorama acquired Austrian tire cord manufacturer Glanzstoff Group in April last year.
The automotive industry has been highlighted by IVL as a key areas of business growth.
“The emerging trend of mobility is underpinning this growth, driven by a growth led by light weighting of cars and tires; fuel efficiency and safety,” Lohia added.
Kordárna sites are strategically located in the European tire industry hub, where major tire and car manufacturers are located with approximately 3.7 million cars produced within a 500km radius.