Indorama takes over Performance Fibers’ Asia arm

Bangkok – Indorama Ventures PCL (IVL) announced on 8 Dec that it is to acquire automotive fibre businesses, Performance Fibers Asia including all its Asian manufacturing operations and the right to continue using the name Performance Fibres. The deal closing is expected in the next three months subject to customary regulatory approvals

Performance Fibers Asia claims to be the leading producer of tire fabrics in the region and to operate the second largest production facility of its kind in China.

Asia is the largest and fastest-growing market for tires globally, accounting for more than 50 percent of global tire demand in 2013 and expanding at 8 percent CAGR over the last five years.

This acquisition represents the continuation of an IVL strategy to increase its presence in the high value-added automotive safety applications, said the company announcement.

Performance Fibers Asia brings a broad and complementary portfolio of products, said IVL, adding to those gained through the acquisitions of PHP Fibres and Trevira in the last two years. The combined three businesses are expected to have annual revenue of at least $850 million.

The Performance Fibres 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.

“We are acquiring a company that has an established premier position in the tire industry across the world [and] a track record of value creation, expanding the business at 17 percent CAGR over the last four years,” said Aloke Lohia, Indorama Ventures vice chairman and group CEO about the take-over.

“With the continued growth of China, India and all emerging nations, the industry growth outlook for tires remains very attractive especially as radial tires’ importance is increasing for fuel efficiency and passenger comfort,” he added.