Ineos Group AG and Solvay SA have revealed further details about their Inovyn joint venture which began business July 1.
Solvay received upon closing an upfront cash payment of 150 million euros ($166.2 million) , subject to customary adjustments such as actual working capital levels.
In addition to contributing its entire European chlorovinyl business, Solvay has transferred liabilities estimated at 260 million euros ($288.1 million) into Inovyn. In three years' time, Solvay will exit Inovyn and receive an additional, performance-based payment targeted to be 280 million euros ($310.3 million), with a minimum of 95 million euros ($105.3 million). Thereafter, Ineos will be the sole owner of the business.
Solvay chief executive Jean-Pierre Clamadieu said: “Solvay's transformation has reached a key milestone with the creation of Inovyn and we will continue to focus on increasing its growth, returns and resilience.
“I want to thank all the teams involved for their commitment in making this happen and I wish the very best to all the employees who begin a new adventure with Inovyn and will ensure its success.”
Ineos chairman Jim Ratcliffe said the joint venture combines two businesses with a strong heritage in the chlorovinyls industry.
He said: “This is now truly a world scale business, well placed to respond rapidly to customer needs in a challenging, competitive market.”
Also effective July 1, Solvay is buying BASF SE's 25 percent stake in its PVC joint venture SolVin. Financial details were not disclosed. In addition, Solvay and Inovyn have agreed to continue supplying basic chemicals to the BASF site in Antwerp.
