IVL to acquire DuraFiber's Mexico operations

DFT’s Queretaro plant in Mexico (co-sited with IVL Mexico) has a capacity to produce a total of 37,500 tonnes/ annum of PET High Modulus Low Shrinkage (PET HMLS), PET Heavy Denier Industrial (PET HDI) and Nylon 6 fully-integrated into tire cord fabrics and industrial and industrial textiles.

DuraFiber is the sole domestic tire cord fabric producer in Mexico with products approved by major global tire companies. Its products are used in a wide range of applications including reinforcement for conveyor belts, hoses, single-ply roofing, tents, automotive airbags, seat belts, safety harnesses and ropes. The market is projected to have a growth rate around 6 per cent CAGR in 2017-2021.

The transaction is expected to be completed in the third quarter of 2017, subject to the usual regulatory approvals (including the approval by the Mexican Antitrust Commission).

Concurrently, with this planned acquisition in Mexico, IVL has agreed to also acquire DuraFiber Longlaville, France having a capacity of 35,000 tonnes/annum, again subject to a definitive agreement, the relevant regulatory approvals and employee approval.

“The acquisition of DuraFiber is strongly aligned with our strategy of pursuing accretive growth opportunities in the high value-added automotive segment. DuraFiber’s portfolio is a complementary fit with our current HVA tire cord fabric products in Europe and a strong fit with our existing PET site in Mexico. DuraFiber is a strong brand with recognised products with deep insights into the market combined with IVL’s global scale will enable us to better meet customers’ evolving needs,” commented Aloke Lohia, Group CEO of IVL.     

“The automotive segment is a key growth driver in IVL’s HVA portfolio that will bring exciting developments to the company. While PET is still an important backbone for the company, HVA is now accounting for 50 per cent of IVL’s core EBITDA. 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 where we are present. I am confident that with the transformational strategy to consolidate our leadership position in key businesses and markets, IVL delivers significant value to our shareholders,” Lohia added.

Listed in Thailand, IVL is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia, Europe and North America. The company has approximately 15,000 employees worldwide and consolidated revenue of $7.2 billion in 2016. (RKS)

Fibre2Fashion News Desk – India