M&As: Indorama completes acquisitions of UTT and Invista Resins

Thailand-based integrated chemicals supplier Indorama Ventures Public Company Limited (IVL) has completed the acquisition of UTT Beteiligungsgesellschaft, a supplier of airbag fabrics that has manufacturing sites in Germany and Mexico with a combine capacity to produce around 70 million sq m of fabrics. UTT also produces other highly specialized solutions in the field of technical textiles.

IVL says the acquisition of UTT reinforces its position as a global leader and integrated supplier of airbag yarns and textiles. This further accelerates IVL’s growth momentum in the automotive sector by bringing together a complementary product portfolio. IVL can offer a wider choice to its customers from yarns to fabrics. In addition, this acquisition will also create opportunities for cost synergies and operational improvements.

In related news, IVL has also completed its acquisition of Invista Resins & Fibers GmbH, a specialty chemicals asset located in Gersthofen, Germany. The Gersthofen site has a combined capacity of 282,000 tonnes/year, and employs approximately 140 employees.

Indorama Ventures had previously announced its agreement to acquire Invista Resins & Fibers GmbH on 20 December 2018. This acquisition is aligned with IVL’s strategy to grow and support its customer’s needs with differentiated solutions in both packaging and in industrial fibres. It provides IVL with competitive advantages, obtaining the intellectual property rights of Polyshield PET and Oxyclear Barrier PET, Invista’s barrier technology, in all markets globally. The PET brands are known for their oxygen barrier packaging, mainly used by the food and beverage industry, to extend the shelf life of juice, wine, beer, diary as well as ketchup.

IVL currently has a leading market share in the North America oxygen barrier PET market. The company made its debut in this segment in 2011 through the acquisition of Auriga Polymers in South Carolina, US, acquiring the rights to the technology for creating the Crystal Clear Oxygen Barrier Resin in certain markets in the Americas. This acquisition gives IVL added momentum to address a growing demand for barrier resins, and reach both existing and new customers globally.

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