Indorama Ventures Announces Acquisition Of UTT

Company Performance

Indorama Ventures Announces Acquisition Of UTT

Indorama Ventures Public Co. Ltd. (IVL) has entered into an agreement to acquire UTT Beteiligungsge sell schaft mbH. UTT is one of the leading suppliers of airbag fabrics and other highly specialised solutions in the field of technical textiles. The company has two sites in Germany and Mexico with approximately 420 employees and produces around 70 million square meters of fabrics. Subject to regulatory approvals, UTT will be acquired by PHP Fibers, a company owned by Indorama Ventures (80% stake) and Toyobo (20% stake). The acquisition of UTT by PHP Fibers brings together two pioneers in the airbag market who have worked together closely and trustingly for more than five decades. With this acquisition, Indorama Ventures is strengthening its portfolio in the airbag sector and adds the UTT weaving sites in Germany and Mexico to the yarn production sites in Germany, the USA and the JV participation in China as well as to the PHP Fibers weaving mills in Germany and the USA established with the expertise of Toyobo. The combination of both companies will form a leading integrated manufacturer of airbag yarns and textiles globally to offering wider choices to its customers in a more cost efficient manner. Aloke Lohia, Group CEO of Indorama Ventures, stressed, "We have known UTT for a long time as a loyal customer of our airbag yarns. The expertise of UTT and the intensified exchange of experience with PHP will advance both companies and further strengthen Indorama Ventures' leading global position in the airbag segment. For the benefit of our customers, we will move even closer to the users in the future in order to be able to respond better and more flexibly to the wishes of our customers, whether for yarns or fabrics. The acquisition also clearly demonstrates the strategic importance of the Automotive Division for Indorama Ventures. IVL is not only focusing on tire yarns, but also on other trendsetting segments such as airbags." Seiji Narahara, President of Toyobo Co. Ltd, commented, "Through the acquisition of UTT, Toyobo Group and PHP will become among the world's top groups that can produce and supply products for airbags, from yarn to fabrics. It will also reinforce our long term relationship with Indorama Ventures, which acquired PHP jointly with Toyobo, as a result."