- Consolidates IVL’s position as the major player in the tire cord industry and supports customer needs with integrated supply chain from feedstock to fabrics
- Geographical benefits from strategic assets located in the heart of Europe’s automotive supply chain
- Enhances IVL’s capabilities in HVA sector and provides the Company with a solid platform for continued growth
Bangkok, Thailand – 29 June 2018 – Indorama Ventures Public Company Limited (IVL), a global chemical producer, announced that it has entered into an agreement to acquire Kordárna Plus a.s., the largest producer of tire cord fabrics in Europe. The Kordárna acquisition 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, subject to regulatory approvals.
Founded in 1948, Kordárna is a leading European manufacturer specializing in cord fabrics for the rubber industry and industrial fabrics for conveyor belts. Tire Cord Fabrics (TCF) represent about 75% of Kordárna’s sales. Kordárna 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.
Both Kordárna sites are strategically located in the European Tire Industry Hub, where major tire and car manufacturers are located with approximately 3.7 million cars produced within a 500km radius, providing Indorama Ventures an optimal location for supplying TCF to meet growing customer demand.
Indorama Ventures will integrate Kordárna within its exisiting 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 fibers globally with 127,000 tpa capacity.
The Automotive segment is one of the key growth drivers in IVL’s high value-added (HVA) portfolio, which continues to see impressive growth at 43% CAGR with an estimated proforma revenue of $1 billion in 2019 when consolidating Kordárna. Kordárna will provide IVL with a complete portfolio of tire cord fabrics, including Polyester, Nylon 66, Nylon 6, Rayon, Aramid and Hybrids. Post acquisition, Indorama Ventures becomes 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.
Commenting on the acquisition, Mr. 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.
The automotive industry is one of the key areas of business growth for IVL. The emerging trend of mobility is underpinning this growth, driven by a growth led by light weighting of cars and tires; fuel efficiency and safety.
These opportunities will drive forward IVL’s strategic growth as the leading fiber partner for the automotive industry, enabling us to deliver best-in-market services to our customers.”
Commenting on the divestment, Mr. Igor Fait, Managing Partner in Jet Investment, said, “The selling of Kordárna to a strategic industrial player is a logical accomplishment of a successful turnaround project on our side. Since we entered Kordárna 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.”
Commenting on the divestment, Mr. Marek Malík, Partner in Jet Investment, said, “Kordárna has made headway in the past eight years to a successful, respected international producer of tire cords and technical textiles. We believe Kordárna will further leverage its position in the market, as it becomes an integral part of horizontally and vertically integrated businesses across various regions under Indorama Ventures petrochemical business.”
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About Indorama Ventures
Indorama Ventures Public Company Limited, listed in Thailand (Bloomberg ticker IVL.TB), is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia, Europe and North America. The company’s portfolio comprises Necessities and High Value-Added (HVA) categories of Polymers, Fibers, and Packaging, selectively integrated with self-manufactured Ethylene Oxide/Glycols and PTA where economical. Indorama Ventures products serve major FMCG and Automotive sectors, i.e. Beverages, Hygiene, Personal Care, Tire and Safety segments. Indorama Ventures has approx. 15,000 employees worldwide and consolidated revenue of US$ 8.4 billion in 2017. The Company is listed in the Dow Jones Sustainability Index (DJSI).
Indorama Ventures is headquartered in Bangkok, Thailand with operating sites in
EMEA: The Netherlands, Germany, Ireland, France, UK, Italy, Denmark, Lithuania, Poland, Czech Republic, Luxembourg, Spain, Turkey, Nigeria, Ghana, Portugal, Egypt
Americas: USA, Mexico, Canada, Brazil
Asia: Thailand, Indonesia, China, India, the Philippines, Myanmar
About Jet Investment
Jet Investment is a Czech-based, Central European, MIFID compliant, private equity investment company and manager of Jet Funds for qualified investors under the regulation of the Czech National Bank and fully compliant with EU regulation. Over the last 20 years, it has been entrusted with restructuring, reorganising and managing twenty five companies in the CE region, beating three time Cash-on-cash multiple of investments. While Jet Investment specialises in medium-sized industrial and manufacturing enterprises, the scope of its investments covers a broad range of industries. Jet Investment specializes in late-stage venture, growth, buy-out, and turnaround/rescue investments. Currently, Jet Investment manages a portfolio of businesses with revenues of CZK 8.5 billion and total EBITDA of CZK 740 million, employing approx. 3.300 people. At present, its Jet 1 Fund, the biggest PE fund in the Czech Republic, manages following companies: STROJÍRNY POLDI, a.s., HOECKLE Group, PBS INDUSTRY, a.s., PBS POWER EQUIPMENT, s.r.o., BRONSWERK HEAT TRANSFER, s.r.o., MSV Metal Studénka, a.s., Kuźnia Ostrów Wielkopolski Sp. z o.o., Fiberpreg CZ a.s., FIBERPREG GmbH, BENET AUTOMOTIVE s.r.o., and Payment4U, a.s.
Jet Investment is headquartered in Brno, Czech Republic, with operating sites in the Czech Republic, Slovakia, Germany, Austria and Poland. For more information: www.jetinvestment.eu
Tel: +662.661.6661 ext. 680
Tel: +662.661.6661 ext. 247
This document contains “forward-looking statements” about the financial condition and results of operations of Indorama Ventures Public Company Limited (the “Company”), which are based on management’s current beliefs, assumptions, expectations and projections about future economic performance and events, considering the information currently available to the management. Any statements preceded by, followed by or that include the words “targets”, “believes”, “expects”, “aims”, “intends”, “will”, “may”, “anticipates”, “would”, “plans”, “could”, “should, “predicts”, “projects”, “estimates”, “foresees” or similar expressions or the negative thereof, identify or signal the presence of forward-looking statements as well as predictions, projections and forecasts of the economy or economic trends of the markets, which are not necessarily indicative of the future or likely performance of the Company.