BASF exits SolVin PVC JV; Solvay, Ineos chlorovinyls JV gets EU approval

BASF exits SolVin PVC JV; Solvay, Ineos chlorovinyls JV gets EU approval

6:34 AM, 2nd July 2015
BASF exits SolVin PVC JV; Solvay, Ineos chlorovinyls JV gets EU approval
Jean-Pierre Clamadieu, CEO, Solvay. (File photo)

LUDWIGSHAFEN, GERMANY/BRUSSELS, BELGIUM: BASF SE is selling its 25 percent share in SolVin to its joint venture partner Solvay SA. The transaction will take place on 1 July. Financial details were not disclosed.

SolVin, established in 1999, was a 75:25 joint venture between Solvay:BASF in the area of polyvinyl chloride (PVC).

Separately, Solvay and Ineos Group Ltd announced the start-up of their joint venture Inovyn, a player in chlorovinyls, following European Commission approval.

In addition, Solvay and Inovyn have agreed to continue supplying basic chemicals to the BASF site in Antwerp, BASF 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,” said Jean-Pierre Clamadieu, CEO, Solvay.

“The Inovyn joint venture combines two businesses with a strong heritage in the chlorovinyls industry, creating a company fit to thrive in an ever changing business environment. This is now truly a world scale business, well placed to respond rapidly to customer needs in a challenging, competitive market,” said Jim Ratcliffe, chairman, Ineos.

The finalized terms of the joint venture agreement remain materially unchanged from those announced in June last year. Solvay received upon closing an upfront cash payment of €150 million. In addition to contributing their entire European chlorovinyl business, Solvay has transferred liabilities estimated at €260 million into the JV.

In three years’ time, Solvay will exit Inovyn and receive an additional, performance-based payment targeted to be €280 million, with a minimum of €95 million. Thereafter, Ineos will be the sole owner of the business.

London-headquartered Inovyn has pro-forma sales of more than €3 billion, with 4,300 employees and assets across 18 sites in Europe. Governance of the JV is equally split between the partners.

© Worldofchemicals News

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