7 May 2013
Details
Solvay and INEOS
have signed a Letter of Intent (LOI)
to combine their European chlorovinyls activities
in a proposed 50-50 joint venture
to form a polyvinyl chloride (PVC) producer
ranking among the top three worldwide
with a combined sales of Euro 4.3 billion
from the strengths of both companies'
* industrial assets,
* the skills of the teams and
* the complementary of geographical presence
in order to enhance competitiveness.
WWW.CHEMWINFO.COM BY KHUN PHICHAI
Contribution
* Solvay would contribute
- its vinyl activities as well as Chlor Chemicals business,
spread across 7 fully integrated production sites in Europe,
- These sites include 5 electrolysis units converted into
more energy efficient membrane technology,
which supports sustainable production of PVC.
* Kerling, the subsidiary of INEOS and
the largest PVC producer in Europe, would contribute
- its chlorovinyls and related businesses including
3 modern and large-scale membrane electrolysis units.
- These assets are based on 10 sites in 7 European countries.
Synergies of a joint venture
* Shared best practices that improve production processes,
particularly to optimize energy consumption
* streamlined product mix and increased specialization of plants
* optimized raw material and energy purchases and usage
* reduced logistics and transport costs
* and combined marketing and salesforces
WWW.CHEMWINFO.COM BY KHUN PHICHAI
Solvay
- The proposed partnership is an ambitious and
value-creating industrial project to create
a world-class player that will be benefit from
the high-quality assets of both companies.
- The joint venture will improve the competitiveness
of its operations in a very challenging environment
regarding feedstocks and energy costs in Europe.
- Furthermore, this transaction would substantially
change Solvay's portfolio of acitivities and allow
the company to accelerate Solvay's transformation into
a chemical group focused on
growth and high-margin businesses.
INEOS
- 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.
WWW.CHEMWINFO.COM BY KHUN PHICHAI
