7/2/2007

Vinnolit acquires the Paste PVC Business of INEOS


Some weeks ago Vinnolit has announced to acquire the Paste PVC (E-PVC) business of INEOS ChlorVinyls. Following the approval by the European Commission the transfer of the business to Vinnolit was effective as of June 29, 2007. The value of the deal is not disclosed.

The acquisition consists of the commercial goodwill of the INEOS Paste PVC business along with its Paste PVC production facilities at Hillhouse (UK) and Schkopau (Germany). The deal also includes Vinnolit entering into an off take agreement for the entire Paste PVC output at INEOS' Porto Torres plant (Italy).

"The combination of the Paste PVC activities of Vinnolit and INEOS fits perfectly into our strategy to further strengthen our position as the leading producer of PVC specialties", comments Dr Josef Ertl, Managing Director of Vinnolit.

Paste PVC is core to strategic growth of Vinnolit with the companies own production capacity of PVC for paste applications now increasing from 230,000 to 330,000 tonnes per year. This business is further extended since Vinnolit markets an additional 65,000 tonnes per year of E-PVC from the INEOS plant in Porto Torres. The increase in PVC volume generates an additional annual turnover of approximately €150 million shifting the company's revenues to more than €900 million as of the next full year.

"The access to all relevant processes for the production of Paste PVC further improves our technological know-how", says Vinnolit Managing Director Dr. Ralph Ottlinger, "but above all, our customers will benefit from an extended product portfolio, an increased Paste PVC capacity and further improved services."

Editorial:
Dr. Oliver Mieden, Environmental Affairs / Corporate Communications
Vinnolit GmbH & Co. KG, Carl-Zeiss-Ring 25, D-85737 Ismaning
Tel.: +49 89 96103 209,
Fax: +49 89 96103 109,
E-Mail: oliver.mieden@vinnolit.com