Chlorovinyl Production Solvay and Ineos to start-up Inovyn
After the European Commission has given Solvay and Ineos the permission to form the 50/50 chlorvinyls Joint Venture company they has announced the start-up of Inovyn.
Brussels/Belgium – "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," said Jim Ratcliffe, Chairman of Ineos. "This is now truly a world scale business, well placed to respond rapidly to customer needs in a challenging, competitive market."
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 – subject to customary adjustments such as actual working capital levels. In addition to contributing their entire European chlorovinyl business, Solvay has transferred liabilities estimated at €260 million into the Joint Venture. 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.
BASF to sell stake in Solvin
"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 of Solvay. "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".
Furthermore Solvay has acquired BASF's 25% stake in its PVC Joint Venture Solvin. Financial details are not disclosed. Solvay contributed its vinyl activities, formerly part of Solvin, to Inovyn. In addition, Solvay and Inovyn have agreed to continue supplying basic chemicals to the BASF site in Antwerp/Belgium.