Bid for Vinyls Italia could lead to restart of closed PVC sites

13 January 2011 16:20  [Source: ICIS news]

PRAGUE (ICIS)--A soon-to-be-concluded bid for Vinyls Italia could lead to the restart of polyvinyl chloride (PVC) production at the company’s three closed sites in Italy within three to four months, sources at Italy’s Economic Development Ministry said on Thursday.

Paolo Romani, Italy’s minister for economic development, was inclined to accept the offer for Vinyls Italia from Russian-Swiss investment fund Gita if the final details currently under discussion in a second round of talks with the investor can be successfully agreed upon, sources at the ministry said.

The offer from Gita, which is based in Switzerland, was considered the best bid to have been submitted in an international tender that included competing bids from Croatian petrochemical producer Dioki Group and from a consortium led by Italian polyolefins distributor Industrie Generali, the ministry said.

Vinyls Italia closed its three PVC production sites and two vinyl chloride monomer (VCM) sites in Italy in May 2009 after the company went into receivership.

The PVC sites are: Porto Marghera, which has a capacity of 185,000 tonnes/year; Ravenna (140,000 tonnes/year of suspension PVC); and Porto Torres, in Sardinia (65,000 tonnes/year of emulsion PVC).

The VCM sites are at Porto Torres (120,000 tonnes/year) and Porto Marghera (250,000 tonnes/year).

Vinyls Italia has been in administration since owner Fiorenzo Sartor, who acquired the business from INEOS, requested it be put in voluntary liquidation in April 2009.

According to sources, Sartor deemed Vinyls Italia’s production to be unprofitable due to high feedstock costs from principal raw material supplier Eni and low returns on PVC.

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By: Will Conroy
+44 20 8652 3214

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