On 7 December, Performance Fibers – one of the world’s leading producers of industrial polyester fibre and fabrics, and supplier to the tyre industry – signed a definitive agreement to sell its Asia operations to Indorama Ventures PCL (IVL), one of the world’s foremost petrochemical producers. Financial terms of the agreement, expected to close in the next few months, were not disclosed.
Earlier this year, Performance Fibers announced the launch of a major business transformation effort that included footprint rationalisation in North America, modernisation of equipment in both North American and Europe, step-change improvements in product quality, and the creation of a product development centre of excellence.
“The sale of our Asia operations fits well with and enhances our consolidation of resources to focus on our core business and accelerate our corporate transformation initiatives,” said Wahid Tawfik, chief executive officer – Americas & Europe. “The sale will further strengthen our financial position and, more importantly, accelerates our modernisation, quality and innovation investments.”
The sale will have no operational impact on Performance Fibers’ Americas and Europe business, which will continue to operate as a combined entity.