27 July 2010 10:22 [Source: ICIS news]
LONDON (ICIS news)--The European Bank for Reconstruction and Development (EBRD) has approved an equity investment of €52m ($68m) in SolVin Holding Netherlands, paving the way for the construction of RusVinyl, the largest integrated polyvinyl chloride (PVC) plant in Russia, said Belgian chemicals company Solvay on Tuesday.
Construction of the 330,000 tonne/year PVC plant in Kstovo near Nizhniy Novgorod is already ongoing. SolVin has a 50% stake in RusVinyl.
EBRD's board of directors also approved an 11-year, €150m loan with a three-year grace period to RusVinyl, said Solvay.
The company added that RusVinyl was included in Russia’s development strategy for the chemical and petrochemical industry for the period up to 2015.
"SolVin is pleased to welcome the EBRD as shareholder in this exciting project, which will bring benefits to all stakeholders involved," said Jacques van Rijckevorsel, chairman of the board of directors of SolVin and member of the executive committee of Solvay.
"Vinyls are versatile and durable materials with a very good life cycle assessment and can be used for a wide array of applications. We look forward to RusVinyl satisfying the growing needs in Russia," he added.
RusVinyl is a 50:50 joint venture established by SolVin and Russia's Sibur. The 50% stake in RusVinyl is held by SolVin Holding Nederland, which is jointly owned by Solvay (75%) and German chemicals major BASF (25%).
($1 = €0.77)
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