14 February 2013 15:02 [Source: ICIS news]
BRUSSELS (ICIS)--Solvay is looking to exit its Latin American vinyls venture, Indupa, the Belgium-headquartered chemicals producer said on Thursday.
Solvay has a 70% stake in the chlorvinyls company, which has production capacities in Argentina and Brazil.
Solvay reported Indupa sales of €545m ($736m) and REBITDA of €45m in its 2011 accounts.
The Latin American PVC producer was reported as “assets held for sale” in the Solvay 2012 accounts and the company said that it is talking to third parties about selling its stake in the venture.
The potential sale will be made as Solvay looks at re-shaping its portfolio to focus on its stronger competitive positions, largely in the faster growing geographies. Some businesses in PVC, polyamide and soda ash are likely to be affected, according to CEO Jean-Pierre Clamadieu.
The company’s full year group sales growth would have been higher than the reported 2% to €12.4bn had it not been for the Indupa decision.
Vinyls segment sales were up 3% at €1.95bn despite lower demand for PVC in Europe. Solvay said it benefited from good PVC demand in Asia with its Vinythai business in Thailand operating at full capacity.
($1 = €0.74)
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