Bangkok-based petrochemical producer Indorama Ventures Pcl (IVL) has entered into an agreement to acquire airbag yarns and technical textiles supplier UTT Beteiligungsgesellschaft mbH. Financial terms of the deal were not disclosed.
IVL on Tuesday said in a filing to the Stock Exchange of Thailand that UTT will be acquired by PHP Fibers, an 80:20 joint venture between IVL and Toyobo.
UTT has two sites in Germany and Mexico with a total production capacity of around 70 million sq m fabric. UTT has been a long-term customer of Indorama Ventures.
“The acquisition also clearly demonstrates the strategic importance of the automotive division for Indorama Ventures,” Aloke Lohia, Group CEO, Indorama Ventures, said. The transaction is expected to push Indorama to a leading position in the airbag segment, he added.
UTT has sites in Germany and Mexico and PHP Fibers has weaving mills in Germany, the United States and a JV in China.
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