Indonesia-based Indorama Ventures PCL (IVL) has acquired the Asia-based fiber operation of Performance Fibers, United States. IVL purchased the company, including all of its Asian manufacturing sites and the rights to the Performance Fibers name, from Sun Capital Partners Inc., United States. Financial terms of the agreement were not disclosed.
Performance Fibers Asia is a leading producer of tire fabrics in the region and operates the second-largest production facility of its kind in China, according to IVL.
“This acquisition is a great strategic fit for IVL,” said Aloke Lohia, chairman and Group CEO, IVL. “Our specialty polymers, fire retardant yarns, and airbag business together with Performance Fiber Asia’s tire fabrics will create scale as well as operational and technical leverage to firmly place Indorama Ventures amongst the leading brands in automotive safety applications worldwide.”
Now that the sale is finalized, Performance Fibers has changed its name to DuraFiber Technologies.
In related company news, IVL also recently signed an agreement to acquire 100-percent shareholding in the purified terephthalic acid (PTA) business of Montreal-based Cepsa Químca S.A., a wholly-owned affiliate of Cepsa and IQ Chimie Inc.
“This will be our inaugural entry into Canada,” said Lohia. “CEPSA Chimie Montreal S.E.C. provides us the unique opportunity to acquire assets that will consolidate our North American polyester value chain businesses for added feedstock security. The acquisition is in line with our announced strategy to expand in our core businesses, primarily in the West.”