BANGKOK—Indorama Ventures Ltd. acquired the Mexican operation of France-based DuraFiber Technologies in a bid to strengthen its automotive segment.

Based in Queretaro, DuraFiber Technologies Mexico Operation has a production capacity of 37,500 metric tons per year, with main products including high modulus low shrinkage PET, heavy denier industrial PET and industrial polyamide 6 used in tire cord and industrial textiles.

The size of the transaction, which is expected to be completed in the third quarter of 2017, was not disclosed.

Meanwhile, IVL also agreed to acquire France-based Longlaville DuraFiber Technologies, which has a production capacity of tire cord yarns of 35,000 tons per year.

The definitive share-purchase agreement for the France-based business is expected to be signed soon.

"The acquisition of DuraFiber is strongly aligned with our strategy of pursuing accretive growth opportunities in the high value-added automotive segment," said Aloke Lohia, group CEO of Indorama Ventures.

DuraFiber's portfolio, he added, fits well with IVL's current high-value-added tire cord fabric products in Europe and its existing PET site in Mexico.

Additionally, Lohia said that DuraFiber is "the sole domestic tire cord fabric producer in Mexico with products approved by major global tire companies."

He went on to say that the automotive segment was a "key growth driver" in Indorama's HVA portfolio, contributing to 50 percent of the company's earnings.

Indorama acquired Austrian tire cord manufacturer Glanzstoff Group, in June.

With plants in Luxembourg, Italy and the Czech Republic, Glanzstoff manufactures tire cord fabrics and single-end-cords. Its products are based on rayon, aramid, polyamide 6,6 and polyester.

IVL entered the tire cord business following the acquisition of PHP Fibers in 2014. Thereafter, it acquired Performance Fibers in 2015 and announced a sizable expansion of that company's tire-cord manufacturing line in Kaiping, China, in January.

In 2016, combined revenue from PHP Fibers, Performance Fibers and Glanzstoff was $602 million.

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