Indorama Ventures buys European tyre cord maker Glanzstoff Group

Commenting on this acquisition, Aloke Lohia, group CEO of Indorama Ventures, said, “The acquisition of Glanzstoff provides a unique opportunity for Indorama Ventures to consolidate its leadership position in the tyre cord business and strengthens our high value-added (HVA) portfolio. It enhances the company’s value proposition and provides collaborative opportunities with the global automotive tire industry, including those for autonomous and electric vehicles. IVL is a leading global specialty-fibres solution provider with strong presence in headliner yarns, acoustic fibres and tyre-cord fabrics and the Glanzstoff acquisition is a strategic fit to help grow this portfolio.”

IVL entered into the high-growth tyre 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 a sizeable expansion of its tyre-cord manufacturing line at Performance Fibers in Kaiping, China in January of 2017. 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.

“We continue 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 our footprint beyond polyester and Nylon 6.6 by entering into Rayon technology. Our 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. We strive to be a world-class, high-growth company and will continue to explore opportunities to deliver earnings growth and enhanced value in a sustainable manner,” added Lohia.