04 February 2013 17:20 [Source: ICIS news]
LONDON (ICIS)--Hungary's BorsodChem is no longer looking for a buyer that would acquire its lossmaking polyvinyl chloride (PVC) business, the company said on Monday.
China's Wanhua Industrial Group, which took over BorsodChem two years ago, said it had improved the outlook for the unit – which was put up for sale in early 2009 – through measures including a renegotiation of its long-term ethylene contract with Hungary's TVK.
“The overall market situation, much driven by the U.S. shale-gas revolution in determining margins and profitability, is however negative and Wanhua-BorsodChem feels it, as do all of its peers in the sector,” said Ding Jiansheng, the CEO of Wanhua and chairman-CEO of BorsodChem.
“But Wanhua is a long-term, strategic investor in the industry and in Hungary and whereas profitability is a key concern short and long term, Wanhua believes that a long-term commitment to quality, technology, professional staff and high level customer service will always serve its goals best,” he added.
The PVC segment also had some cost benefits for BorsodChem from its important integration with the company's manufacturing of isocyanates, he pointed out.
BorsodChem uses the PVC plant as a recycler of hydrochloric acid, a by-product of the isocyanates production.
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