Performance Fibers to Expand Tire Cord Fabric Capacity to Meet Demand Growth
17 May 2016
Following the integration into Indorama Ventures (IVL) a year ago, Performance Fibers today announced that it has received the approval of IVL’s board to construct a fully integrated dipping unit to expand further its tire cord fabric production capacity adjacent to the current production facility in Kaiping, Guangdong, China.
The expansion is the first major strategic move by Indorama Ventures to support the organic growth of Performance Fibers which is amongst the top premium suppliers of Polyester tire cord fabrics to the tire industry.
“The expansion represents an increase in our tire cord fabric production capacity by over 40% and our commitment to support our customers’ growth plan,” said Derek Chan, President of Performance Fibers.
The new facility will be timely for Performance Fibers to support the expected demand growth of new products developed from various technology platforms. It is expected that the new unit will commence production in 2018.
“Indorama Ventures views the Automotive market as a strategic focus of future expansion and we view Performance Fibers to be the growth engine of our Automotive business segment. Capacity expansion at the current site in Kaiping is a critical first move in our strategic plan while we are investigating how to invest further to increase our global manufacture footprint,” remarked Uday Gill, President of Fibers, Indorama Ventures.