3/16/2010

Vinnolit consistently continues its climb out of the economic crisis


Business climate 2009
Triggered by the international financial crisis, came a significant decline in the European PVC market in the 4th quarter of 2008. In 2009 the market decline continued. Since the middle of the year a stabilisation, followed by a gradual recovery in demand, has been observed. Consequently Vinnolit´s sales volume of PVC in 2009 was significantly below previous year's level. However, the company was able to maintain its market position and to slightly increase its market. In consequence of the economic situation, the decline in sales and the level of the raw material prices, the turnover in 2009 fell to 647 million euros, 24 percent below the previous year. The performance (EBITDA) in 2009 was burdened by the decline in volumes and the resulting low capacity utilisation, and fell considerably below last year's level.

On annual average 1,420 staff were employed by Vinnolit Group, 1,348 of them in Germany, a slight decline compared to the previous year. Moreover, Vinnolit on average trained about 30 apprentices.

2010 prospects
In January/February 2010 the demand for PVC improved slightly in comparison to the weak previous year. Vinnolit currently expects a further improvement, but with moderate dynamics. The way back to the before-crisis´ level will be difficult and will take several years to complete. There will be a risk of setbacks.

Investments
Vinnolit invested a total of more than 45 million euros in 2009. Thereof 29 million euros were allocated to the project VinCon, the expansion and conversion of the chlor-alkali-electrolysis to the energy-saving membrane technology. Altogether Vinnolit invested about 100 million euros in this new technology. The gradual conversion - including the expansion of the chlorine capacity from 390,000 tons to 430,000 tons per year - was completed on schedule in mid-2009. The result is an improved supply of raw materials for PVC production and the extension and improvement of the supply situation of the important co-product caustic soda. At the same time Vinnolit makes a significant contribution to increase the energy efficiency of the process and reduce CO2 emissions.

In 2010 investments of around 20 million euros are projected.



Editorial:
Dr Oliver Mieden, Environmental Affairs / Corporate Communications
Vinnolit GmbH & Co. KG, Carl-Zeiss-Ring 25, 85737 Ismaning, Germany
Tel.: +49 89 96103-240, Fax: -122, e-mail: oliver.mieden@vinnolit.com

Andrea Walter, Public Relations
Vinnolit GmbH & Co. KG, Carl-Zeiss-Ring 25, 85737 Ismaning, Germany
Tel.: +49 89 96103-240, Fax: -122, e-mail: andrea.walter@vinnolit.com