Ineos Group and Solvay SA's joint venture Inovyn has announced that it is permanently closing its PVC production facility in Schkopau, Germany.
Production at the plant has been suspended since Dec. 31, since a VCM supply contract with Dow Chemical Co. expired, Inovyn officials said in a Sept. 15 news release. Since then, the two companies have been trying to secure a new contract, but say now that will not happen.
Jeff Seed, the managing director of the Schkopau Site for Inovyn, said: “It is extremely disappointing that we have been unable to agree a competitive long-term supply contract with Dow. With no contract in place the operations at Schkopau are no longer economically viable and we have no option but to plan for closure of the site.
“Whilst unavoidable, today's announcement is of course unwelcome news for our employees and those of our partner organizations at the site. We will do everything we can to manage the closure sensitively and in full co-operation with employees and their representatives.”
Solvay and Ineos officials had talked about the possibility of a need to close the plant for at least two years. In 2013, the companies noted the site had a capacity of about 330 million pounds annually.
Inovyn states that it will continue to ensure continuity of supply for its customers by sourcing PVC from other production sites in its network.
Inovyn is a 50-50 joint venture that combines the chlorvinyls activities of Ineos and Solvay. The company has current annual sales of over 3.5 billion euros and employs 4,300 people.