Japan’s Asahi Glass buys Solvay stake in Vinythai

(re-leads with AGC’s statement; adds details throughout)

SINGAPORE (ICIS)–Japan’s Asahi Glass Co (AGC) said on Wednesday it has agreed to acquire the 58.77% stake of Belgian firm Solvay in Thailand’s caustic soda and polyvinyl chloride (PVC) producer Vinythai.

The acquisition price was Thai baht (Bt) 15 per Vinythai share or about Bt10.5bn, with completion of the transaction expected “no later than the first half of 2017”, publicly-listed Vinythai said in a filing to the Stock Exchange of Thailand.

Vinythai has production facilities at Map Ta Phut in Thailand’s Rayong province and is 24.98%-owned by Thai petrochemical major PTT Global Chemical (PTTGC).

AGC said that the acquisition is in line with the company’s strategic focus on the enhancement of its chlor-alkali business in southeast Asia.

“The caustic soda and PVC markets in southeast Asia are projected to grow at around 5% per year, and the 70% pf the demand comes from Indonesia, Thailand, and Vietnam where the group has production bases,” AGC said.

In Indonesia, AGC said it has completed expansion of its caustic soda and PVC production this year and expects to complete expansion of its vinyl chloride monomer (VCM) in the country in 2018; while in Vietnam, it had acquired a PVC manufacturer in 2014.

Solvay’s sale of its Vinythai stake marks the Belgian specialty chemical producer’s exit from the PVC operations in Asia, following divestment of the business in Europe and Brazil.

At 16:29 Singapore time (08:29 GMT), Vinythai was down Bt2.70/share or 14.8% lower at Bt15.50/share.

($1 = Bt35.6)