 "Ineos and Solvay launch chlorovinyls JV Inovyn")
Ineos and Solvay on July 1, 2015 announced the start-up of their joint venture Inovyn, a manufacturer of chlorovinyls, following European Commission approval. "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 of Ineos.
Jean-Pierre Clamadieu, CEO of Solvay, added, “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.”
The finalised 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 Euro 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 Euro 260 million into the joint venture. In three years' time, Solvay will exit Inovyn and receive an additional, performance-based payment targeted to be Euro 280 million, with a minimum of Euro 95 million. Thereafter, Ineos will be the sole owner of the business.
Meanwhile, Solvay on July 1, 2015 announced that it has bought BASF’s 25 percent stake in their polyvinyl chloride (PVC) joint venture SolVin for an undisclosed amount. In addition, Solvay and Inovyn have agreed to continue supplying basic chemicals to the BASF site in Antwerp.
SolVin was established in 1999 as a 75:25 joint venture between Solvay and BASF in the area of polyvinyl chloride. Headquartered in London, Inovyn has pro-forma sales of more than Euro 3 billion, with 4,300 employees and assets across 18 sites in Belgium, France, Germany, Italy, Norway, Spain, Sweden and the UK. Governance of the joint venture is equally split between the partners.
Jean-Pierre Clamadieu, CEO of Solvay, added, “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.”
The finalised 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 Euro 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 Euro 260 million into the joint venture. In three years' time, Solvay will exit Inovyn and receive an additional, performance-based payment targeted to be Euro 280 million, with a minimum of Euro 95 million. Thereafter, Ineos will be the sole owner of the business.
Meanwhile, Solvay on July 1, 2015 announced that it has bought BASF’s 25 percent stake in their polyvinyl chloride (PVC) joint venture SolVin for an undisclosed amount. In addition, Solvay and Inovyn have agreed to continue supplying basic chemicals to the BASF site in Antwerp.
SolVin was established in 1999 as a 75:25 joint venture between Solvay and BASF in the area of polyvinyl chloride. Headquartered in London, Inovyn has pro-forma sales of more than Euro 3 billion, with 4,300 employees and assets across 18 sites in Belgium, France, Germany, Italy, Norway, Spain, Sweden and the UK. Governance of the joint venture is equally split between the partners.