INEOS and Solvay announce the start-up of their Joint Venture INOVYN, a world-class competitive player in chlorovinyls, following European Commission approval.
“Solvay’s transformation has reached a key milestone with the creation of INOVYN and we will continue to focus on increasing its growth, returns and resilience,” said Jean-Pierre Clamadieu, CEO of Solvay. “I want to thank all the teams involved for their commitment in making this happen and I wish the very best to all the employees who begin a new adventure with INOVYN and will ensure its success.”
“The INOVYN Joint Venture combines two businesses with a strong heritage in the chlorovinyls industry, creating a company fit to thrive in an ever changing business environment," said Jim Ratcliffe, Chairman of INEOS. "This is now truly a world scale business, well placed to respond rapidly to customer needs in a challenging, competitive market.”
The finalized terms of the Joint Venture agreement remain materially unchanged from those announced in June last year. Solvay received upon closing an upfront cash payment of €150 million – subject to customary adjustments such as actual working capital levels. In addition to contributing their entire European chlorovinyl business Solvay has transferred liabilities estimated at €260 million into the Joint Venture. In three years’ time, Solvay will exit INOVYN and receive an additional, performance-based payment targeted to be €280 million, with a minimum of €95 million. Thereafter, INEOS will be the sole owner of the business.
Also effective July 1st, Solvay is buying BASF’s 25% stake in its PVC Joint Venture SolVin*. Financial details are not disclosed. In addition, Solvay and INOVYN have agreed to continue supplying basic chemicals to the BASF site in Antwerp.
Headquartered in London, INOVYN has pro-forma sales of more than €3 billion, with 4,300 employees and assets across 18 sites in Belgium, France, Germany, Italy, Norway, Spain, Sweden and the UK. Governance of the Joint Venture is equally split between the partners.
*SolVin: JV between Solvay (75%) and BASF (25%). Solvay contributed its vinyl activities, formerly part of SolVin, to INOVYN.