Italy considers selling Vinyls Italia’s PVC, VCM assets separately

01 June 2011 17:44  [Source: ICIS news]

LONDON (ICIS)--Troubled polyvinyl chloride (PVC) and vinyl chloride monomer (VCM) producer Vinyls Italia could be broken up for sale, as potential investors have only made bids for parts of the company and its mothballed plants, the Italian Ministry of Economic Development said on Wednesday.

Italian officials have been trying to come up with a plan for Vinyls Italia since April, when Russian-Swiss investment fund Gita missed final deadlines to proceed with the purchase of the producer.

Gita’s failed bid had led the ministry to reconsider previously rejected bids from Croatian petrochemical producer Dioki Group and another from a consortium led by Italian polyolefins distributor Industrie Generali.

However, the ministry said it would probably not be possible to reach acceptable deals with these two bidders, or other potential investors, unless Vinyls Italia’s assets can be sold in parts.

Last October, Dioki bid for two units of the company: the Ravenna branch, in northeast Italy, which includes a 140,000 tonne/year suspension PVC plant; and the Porto Torres branch, in Sardinia, which has a 120,000 tonne/year VCM facility and a 65,000 tonne/year emulsion PVC plant. 

Vinyls Italia also has operations at Porto Marghera, near Venice, which has PVC and VCM units with capacities of 185,000 tonnes/year and 250,000 tonnes/year, respectively.

For more on PVC and VCM, visit ICIS chemical intelligence
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By: Will Conroy
+44 20 8652 3214



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