Bangkok – Indorama Ventures Public Co. Ltd (IVL) has completed the purchase of Czech tire cord and technical fabrics business Kordárna Plus a.s., IVL announced 31 Oct.
The acquisition 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).
Kordárna is the largest independent tire cord supplier in Europe and with the acquisition, IVL claims, it will become the biggest tire cord producer in Europe and second largest tire cords supplier globally.
“The acquisition reinforces IVL’s leading position in the tire cord market, creates significant growth opportunities and enhances IVL’s flexibility to serves the tire industry as a global solution provider,” the Thai company said.
The takeover, according to Aloke Lohia group CEO of Indorama Ventures, is part of the Thai company’s strategy to become a “world-scale” supplier to the automotive industry.
Kordárna’s portfolio of tire cord fabrics includes polyester, nylon 66, nylon 6, rayon, aramid and hybrids.
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. With the Czech acquisitioj, IVL has a total of 12 manufacturing sites for automotive fibres globally with 127ktpa capacity.
This is the latest in a series of IVL investments in tire cord ventures. Last April, the company acquired Austrian tire cord manufacturer Glanzstoff Group.
The automotive industry has been highlighted by IVL as a key areas of business growth.
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.