Thai firm to buy Europe's No.1 tire cord company

BANGKOK — Indorama Ventures Public Co. Ltd. plans to acquire Glanzstoff Group, a European producer of tire cord fabrics and single-end cords for high-performance tire application.

Indorama, a Bangkok-based global chemicals producer, said it expects the transaction to close during this year's second quarter, subject to regulatory approval. Financial terms weren't disclosed.

Indorama said Glanzstoff offers a wide range of offerings in the tire cord fabrics and single-end cords, with choices in high-performance rayon, aramid, nylon 6.6 and polyester, along with hybrid filament yarns for the high growth and high-performance automotive applications.

It said that Glanzstoff is Europe's largest converter for tire cord fabrics and a global leader for SEC. Glanztoff has manufacturing sites in Luxembourg, Italy and Czech Republic, and is constructing a plant in China.

The total capacity at the current locations include 12,000 metric tons of rayon yarn, 30,600 tons of twisting yarn, and 31,000 tons of weaving yarn, 30,000 tons of dipping fabrics and 6,300 tons of single-end cap ply, according to Indorama.

"The acquisition of Glanzstoff provides a unique opportunity for Indorama Ventures to consolidate its leadership position in the tire cord business and strengthens our high value-added portfolio," said Aloke Lohia, Indorama Ventures group CEO.

"It enhances the company's value proposition and provides collaborative opportunities with the global automotive tire industry, including those for autonomous and electric vehicles."

Indorama entered the tire cord business with the acquisition of PHP Fibers in 2014, followed the next year by the purchase of Performance Fibers. The firm also announced in January a sizeable expansion of its tire cord manufacturing line at the Performance Fibers facility in Kaiping, China.

Taken together, the firm said that in 2016 PHP Fibers, Performance Fibers and Glanzstoff combined for $602 million in sales. The Bangkok firm said its total high value-added segment had revenues of more than $2 billion last year.

"The Glanzstoff platform will expand our footprint beyond polyester and nylon 6.6 by entering into rayon technology," Mr. Lohia said. "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 in which we are present."