Indorama Ventures Public Company Limited (IVL), a leading chemical producer, has entered into an agreement to acquire DuraFiber Technologies México Operations, S. A. DE C. V. (DFT), a leading Mexican producer of durable technical textiles for industrial, tire reinforcement, and specialty applications.
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. 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 transaction is expected to be completed in the third quarter of 2017. Concurrently with this planned acquisition in Mexico, IVL has agreed to also acquire DuraFiber Longlaville, France, having a capacity of 35,000 tonnes/annum.
The market is projected to have a growth rate around 6% CAGR in 2017-2021. DuraFiber is the sole domestic tire cord fabric producer in Mexico with products approved by major global tire companies.
Indorama Ventures, listed in Thailand, is one of the leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia, Europe and North America. The company’s portfolio comprises necessities and High Value-Added (HVA) categories of polymers, fibres, and packaging, selectively integrated with self-manufactured ethylene oxide/glycols and PTA where economical.
IVL products serve major FMCG and automotive sectors, i.e. beverages, hygiene, personal care, tire and safety segments.