Brussels-based Solvay SA and Ineos Group AG will sell off some of their assets to International Chemical Investors Group SE as part of the move to create the Inovyn joint venture for their European chlorvinyls operations.
The agreement between the three companies, announced March 19, involves six different facilities and follows “extensive discussions with the European Commission” which is a key step toward approval of the joint venture.
ICIG, based in Luxembourg, is a privately-held group specializing in chemical and pharmaceutical operations with 23 manufacturing sites across Europe and the U.S.
ICIG will acquire:
• Chlorine plants and EDC/VCM plants at Tessenderlo, Belgium, excluding the chlorotoluenes business that will remain with Rolle, Switzerland-based Ineos.
•A PVC plant in Mazingarbe, France.
• A PVC plant at Beek, the Netherlands.
• PVC and VCM plants at Wilhelmshaven, Germany
• EDC plants at Runcorn, United Kingdom
In addition, the membrane chlorine plant at Runcorn is to be placed in a 50/50 joint venture between Inovyn and ICIG.
The divestment will also include a portion of the potassium hydroxide business at Tessenderlo, with ICIG supplying Inovyn under a toll manufacturing arrangement for the proportion of the potassium hydroxide business that Inovyn will retain.
It is anticipated that the formation of Inovyn will take place in the second quarter of 2015, upon receipt of all required regulatory approvals and completion of consultation with the affected Ineos employees.