Indorama completes acquisition of DuraFiber Technologies

Durafiber is the sole domestic tire cord fabric producer in Mexico, and has a broad customer base and long-established relationship with major global tire companies. This strategic acquisition of Durafiber expands the breadth of IVL’s tire cord fabric products, and provides the opportunity to leverage IVL’s global scale and assets to capture synergies and vast market opportunities. The automotive fibre market is growing at 6 per cent CAGR in 2017-2021 and has an estimated value at around US$ 10 billion.

"We are pleased that Durafiber is now a part of the IVL family. It is an exciting opportunity to strengthen our presence in fast-growing markets in Mexico and Europe, and further enhance the company’s leading position in automotive segment, where we see an enormous opportunity. With the acquisition of Durafiber, we will be best positioned to address a wide range of applications in the automotive fibre market, and expand capabilities to deliver best-in-market services to our customers. Offering customers access to a strong portfolio of industry-leading brands, along with a well-integrated of R&D and production facilities across the world are a unique global service proposal to the automotive industry. This highly differentiated value proposition will deliver greater benefits for our customers and drive forward IVL’s next phase of strategic growth as the leading fiber partner for the automotive industry,"  Aloke Lohia, Group CEO of Indorama Ventures, said.

"We continue implementing the transformational and value-enhancing strategy through HVA, which has delivered meaningfully and positions us well to capture the abundant synergies and business opportunities. Over the past 5 years, IVL acquired 39 plants; of which 29 are HVA. HVA businesses have contributed over 50 per cent of EBITDA in last 12 months. We have a strong platform for future growth from our global portfolio of markets and diversified revenue streams backed by strong R&D engines. This solid platform will allow us to generate top-line and bottom-line growth as well as deliver sustainable returns for our shareholders," Lohia concluded. (RR)

Fibre2Fashion News Desk – India