Indorama Ventures Public Company Limited (IVL), a leading manufacturer specializing in cord fabrics for the rubber industry and industrial fabrics for conveyor belts made an agreement to takeover Kordárna Plus a.s., the largest producer of tire cord fabrics in Europe having production sites in the Czech Republic and in Slovakia.
Kodarna has a combined tire cord and technical fabrics production capacity of 50,000 tonnes per annum (tpa). The transaction is expected to complete during the second half of 2018, subject to regulatory approvals.
Kordárna, founded in 1948, has a broad customer base with a long association with major global tire companies and supplies to customers in more than 15 countries in Europe, North America, South America and Asia.
Integrating Kordárna within its existing operations in Europe, Indorama Ventures will offer synergies from backward integration into Polyester feedstocks and increased production flexibility and will have 12 manufacturing sites for Automotive fibers globally with 127,000 tpa capacity.
Indorama Ventures after the takeover of Kodarna will be the number one tire cord producer in Europe and the second largest for tire cords globally, with a full range of tire cord fabrics and single end cords.
Aloke Lohia, Group CEO of Indorama Ventures, said, “The acquisition of Kordárna is consistent with our proven HVA strategy for growth through accretive acquisitions. Kordárna 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 Kordárna’s long-standing customer relationships, we will create powerful opportunities to sustainably grow with our first billion dollar vertical in HVA.”