Indorama buy Europe's largest tire cord producer Kordarna

Indorama to buy Europe's largest tire cord producer Kordarna

7:19 AM, 5th July 2018
Indorama to buy Europe's largest tire cord producer Kordarna
Kordarna is the largest producer of tire cord fabrics in Europe.

BANGKOK, THAILAND: Indorama Ventures Public Company Limited (IVL) has entered into an agreement to acquire Kordarna Plus as, the largest producer of tire cord fabrics in Europe.

The Kordarna acquisition from Jet Investment includes one production site in the Czech Republic and one in Slovakia, with a combined tire cord and technical fabrics production capacity of 50,000 tonnes per annum (tpa). The company employs 786 employees.

The transaction is expected to be completed during the second half of 2018.

Tire cord fabrics (TCF) represent about 75 percent of Kordarna’s sales. Kordarna has a broad customer base and long-established relationship with major global tire companies. Its products are supplied to customers in more than 15 countries in Europe, North America, South America and Asia.

Indorama Ventures will integrate Kordarna within its existing operations in Europe, offering synergies from backward integration into Polyester feedstocks and increased production flexibility. Post-acquisition, IVL will have 12 manufacturing sites for automotive fibres globally with 127,000 tpa capacity.

“The acquisition of Kordarna is consistent with our proven HVA strategy for growth through accretive acquisitions. Kordarna is one of the most recognized and trusted brands in the tire industry and has huge potential together with our PHP, Performance Fibers and Glanzstoff businesses to jointly create value for the customers and our stakeholders. By combining our proven capabilities and scale with Kordarna long-standing customer relationships, we will create powerful opportunities to sustainably grow with our first billion-dollar vertical in HVA,” Aloke Lohia, CEO of Indorama Ventures.

“The selling of Kordarna to a strategic industrial player is a logical accomplishment of a successful turnaround project on our side. Since we entered Kordarna in 2010, the company has strengthened its position in all aspects of the business and grown internally to be a leading tire cord producer in Europe,” added Igor Fait, managing partner in Jet Investment.

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