MOSCOW (
MRC) -- Indorama Ventures PCL, Thailand’s leading petrochemicals company, has reached a definitive agreement to acquire one of the world’s premium automotive fibre businesses, Performance Fibers Asia, including all its Asian manufacturing operations and the right to continue using the name Performance Fibers, as per
Business-Standart.
Indorama Ventures Ltd (IVL) will make the acquisition from an affiliate of Sun Capital Partners Inc, a leading private investment firm specialising in leveraged buyouts and investments in market-leading companies. Financial terms of the agreement were not disclosed.
Performance Fibers Asia is the premier producer of tyre fabrics in the region and is the second largest production facility of its kind in China. Asia is the largest and fastest-growing market for tyres globally, accounting for more than 50% of global tyre demand in 2013 and expanding at 8% CAGR over the last five years.
This acquisition represents the continuation of IVL’s strategy to increase and strengthen its presence in the high value-added (HVA) automotive safety applications. Performance Fibers Asia brings together a broad and complementary portfolio of innovative products to Indorama Ventures, following the acquisition of PHP Fibers and Trevira in the last two years. The combined three businesses are expected to have annual revenue of at least $850 million.
The Performance Fibers business in Europe and the Americas will continue to operate separately under the ownership of Sun Capital and the leadership of the existing management team in those regions.
Performance Fibers Asia production facilities are strategically situated in the Pearl River Delta city of Kaiping, where IVL’s Guangdong facility is a supplier of specialty PET polymers, providing immediate synergies in the raw material supply chain and operational excellence.
As MRC
wrote before, the plant engineering and construction specialists, Uhde Inventa-Fischer, have executed the revamp of a plant for the production of bottle and packaging-grade PET for Indorama Ventures Poland Sp. Z.o.o. in Wloclawek, Poland.
Indorama Ventures is a leading producer in the polyester value chain in Thailand with strong global network and manufacturing across Asia, Europe and North America. Its products serve major players in diversified end use markets, including food, beverages, personal and home care, health care, automotives, textile, and industrial. The company"s main products are PTA, PET and polyester fibre, which are distributed across the world.
MRC