Solvay Indupa sees '04 sales up 5% on Brazilian growth

16 April 2004 23:17  [Source: ICIS news]

SALVADOR, Brazil (CNI)--South American polyvinyl chloride (PVC) producer Solvay Indupa said Friday it expects to raise its sales revenues by 5-6% this year, thanks to a strong recovery in Brazilian demand.

The company reported revenues of $686m last year, of which 60% was generated in Brazil and the remainder in Argentina. It did not provide the comparable figure for 2002.

Solvay Indupa, part of Belgian chemicals producer Solvay, has capacity for 240 000 tonne/year of PVC at Santo Andre, Sao Paulo state in Brazil and 210 000 tonne/year in Bahia Blanca, Argentina.

The company is investing $50m (Euro42m) in a 30 000 tonne/year expansion of its Santo Andre plant; the firm said the project is on schedule for completion in mid-2005.

Carlos Tieghi, commercial director for the Mercosur region, said Solvay is predicting a 10% rise in Brazilian PVC demand this year, following a 10% decline last year. Historically, PVC demand in the country rises by three times GDP (gross domestic product), which the government is forecasting will increase by 3-4% this year, he noted.

As a result, Brazilian PVC demand could return to 2002 levels of 650 000 tonne this year, Tieghi added.

Argentinean PVC demand soared 20% last year, resulting in a growth in demand for both Argentina and Brazil of 2%, according to Solvay Indupa. Growth in Argentina is expected to slow this year, it said.

By: Anna Jagger
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