Ineos and Solvay plan PVC operations merger

PLASTICS & RUBBER WEEKLY

Published: May 7, 2013 10:59 am ET
Updated: May 9, 2013 9:08 am ET

Related to this story

Topics Materials, Mergers & Acquisitions, Materials Suppliers, Joint Venture, K 2013
Companies & Associations Solvay SA

LYNDHURST, ENGLAND — Chemicals giants Ineos Group and Solvay SA have announced their intention to enter into a 50-50 joint venture which, the companies said will create a PVC business with an annual sales of about 4.3 billion euros ($5.63 billion).

An Ineos spokesman said the company did not have a time-frame for when the deal might get the go-ahead or any conditions, such as sell-offs, that might be imposed.

If the deal is approved, the two firms' combined European chlorvinyls operations would be among the top three worldwide producers, the pair said in a statement.

"This agreement will result in the creation of a truly competitive and sustainable business that will provide significant benefit to customers such as reliable access to PVC," said Jim Ratcliffe, Ineos' chairman.

"The newly combined business, which will be of world scale, will be able to better respond to rapidly changing European markets and to match increasing competition from global producers."

Jean-Pierre Clamadieu, Solvay's chief executive, said the joint venture would improve the competitiveness of its operations in a very challenging environment regarding feedstock and energy costs in Europe.

"We are convinced that this is the right project to secure, for the long term, the development of Solvay's European chlorvinyls activities, of its employees and its plants.

"Furthermore, this transaction would substantially change our portfolio of activities and allow us to accelerate Solvay's transformation into a chemical group focused on growth and high-margin businesses."

If the venture goes ahead, Solvay would contribute its vinyl activities — part of Solvin, itself a 75/25 venture between Solvay and BASF SE — as well as its Chlor Chemicals business, spread across seven integrated production sites in Europe.

The company said these sites included five electrolysis units "converted into more energy efficient membrane technology, which supports sustainable production of PVC".

Kerling, an Ineos subsidiary and the largest PVC producer in Europe, would contribute its chlorvinyls and related businesses, including three modern and large-scale membrane electrolysis units, based on 10 sites in seven European countries.

Ineos is based in Lyndhurst, England, while Solvay is headquartered in Brussels.

This story is from Plastics News sister publication Plastics & Rubber Weekly.


Comments

Ineos and Solvay plan PVC operations merger

PLASTICS & RUBBER WEEKLY

Published: May 7, 2013 10:59 am ET
Updated: May 9, 2013 9:08 am ET

Post Your Comments


Back to story


More stories

Image

China's Zhongtai Chemical calls off large-scale PVC project

September 12, 2014 2:16 pm ET

Accepting the gloomy reality of the PVC market, Xinjiang Zhongtai Chemical Co. Ltd. has officially canceled a 800,000-ton PVC resin project and...    More

Image

Parx launches production of Saniconcentrates antibacterial polymers

September 12, 2014 11:11 am ET

Parx Plastics has achieved commercial production of its Saniconcentrates-brand line of antibacterial polymers.    More

Image

Germany's Lehmann & Voss buys U.S.-based Performance Compounding

September 12, 2014 11:36 am ET

German compounding firm Lehmann & Voss & Co. KG has acquired Performance Compounding LLC for an undisclosed price.    More

Image

PolyOne says its TPE won't irritate skin in wearable electronics

September 12, 2014 10:58 am ET

PolyOne Corp.'s GLS thermoplastic elastomers unit says its Versaflex CE 3620 compounds have met all ISO 10993-10:2010 testing requirements with no...    More

Image

Addivant resumes Trimene production

September 10, 2014 5:29 pm ET

Additives maker Addivant has resumed production of its Trimene Base-brand curing agent for natural and synthetic rubber compounds.    More

Market Reports

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events