18 April 2011 18:09 [Source: ICIS news]
PRAGUE (ICIS)--Italy's economic development ministry has withdrawn an invitation to Russian-Swiss investment fund Gita to acquire polyvinyl chloride (PVC) producer Vinyls Italia, the ministry said on Monday.
Gita had "not complied with commitments it made within agreed deadlines to allow the acquisition process to proceed," according to a ministry statement.
"The legitimate expectations of the workers at Vinyls Italia do not allow for any extension of these deadlines," it added.
In January, ministry sources said they thought the takeover could lead to the restart of production at the company’s three closed sites in Italy within three to four months.
The ministry said it would meet with trade unions at Vinyls Italia on April 19 to discuss the way forward. Gita could not be reached for comment.
The offer from Gita, based in Switzerland, was named the best bid received 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.
In May 2009, Vinyls Italia closed its three PVC production sites and two vinyl chloride monomer (VCM) sites after the company went into administration.
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 receivership since owner Fiorenzo Sartor, who bought 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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