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

RPC Group buying Iceland's Promens

November 27, 2014 8:46 am ET

In a major acquisition that combines two rigid packaging companies with international footprints, RPC Group plc has signed a 399 million euro ($497...    More

RheTech to commercialize hemp fibers to replace glass in PP

November 27, 2014 6:00 am ET

RheTech Inc. plan to commercialize its first hemp fiber compounds in January.    More

Image

Market growing, but compounders say customers remain 'cautious'

November 27, 2014 6:00 am ET

Everywhere they've looked, North American compounders and concentrate makers have seen numbers on the rise in 2014.    More

Image

Huhtamäki selling film division

November 26, 2014 2:10 pm ET

Private equity firm Deutsche Beteiligungs AG (DBAG) will acquire the film business of Finland-based plastics packaging group Huhtamäki Oyj for 141...    More

Image

Americhem beats weather woes at start of 2014 for good fiscal year

November 26, 2014 9:45 am ET

Gains from the automotive and construction markets provided a strong fiscal 2014 for Americhem Inc.    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

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

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

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events