10/24/2001

Vinnolit maintains its position in a difficult market. Expansion in chlorine, EDC and VCM progresses

Based on the acquisition of Vinnolit and Vintron by Advent International last year and the consistent expansion of Vintron- and Vinnolit facilities, the foundation for Vinnolit's future success has been laid.

"In recent years, our company has made every effort to increase the acceptance of the material PVC in the market and to simultaneously consolidate our position in the PVC sector", explains Dr. Josef Ertl, Managing Director, Vinnolit GmbH & Co. KG. "Our strength is based on PVC products for high performance applications, in particularly PVC for paste processing. Moreover, our new internal cooling technology for suspension PVC has given us additional strength in Standard-S-PVC."

Major restructuring projects were initiated and have in the meantime been largely completed. Since 1998, Vinnolit and Vintron have invested approximately 260 million Euro in the integration of the raw materials chlorine and VCM, and have implemented a new suspension PVC technology. In spring 2001, the world's first suspension plant equipped with the innovative Vinnolit internal cooling technology was put into operation in Knapsack. These up-to-date high performance reactors guarantee product consistency and maximum throughput capacity. The implementation of Vintron's new membrane electrolysis in Knapsack - at the beginning of October - took place according to plan. After completion of the VCM extension in December this year, at Vintron as well, Vinnolit will operate two fully backwards integrated twin sites at Burghausen/Gendorf and Cologne/Knapsack with large VCM facilities with an annual capacity of approximately 300 kt each.

Besides ensuring economic efficiency, environmental interests, which form part of the company policy, have the highest priority. The company published an exemplary Environmental Declaration in 2000 and gained recognition for the strong commitment in this area by being selected for inclusion in the publication "German Standards - Exemplary Environmental Reports" ("Deutsche Standards - Vorbildliche Umwelt-berichte") issued by the publishers Arcum. "In 2000, the Vinnolit Group generated sales of 548 million Euro with approximately 1620 employees at four locations. Exports account for more than 55 per cent", explains Managing Director Hans-Jürgen Zippel. "We expect a further increase in turnover in the current year. Based on the success emerging from the extensive restructuring measures of the recent years and compared with the previous year, Vinnolit continues to generate solid, positive results despite difficult general conditions. However, we will not reach our EBITDA objectives."

The reason is the unfavourable market situation which has continued in the second half of the year and is marked by unsatisfactory margins and unincisive economic stimulation in the fall. The PVC industry is still suffering from the weak construction business. The future cyclical trend is determined by persistent uncertainty. "Overall, Vinnolit has maintained its strong position in a difficult market, resulting from our efforts in recent years", says Hans-Jürgen Zippel.

 

Vinnolit GmbH & Co. KG1 at a glance

Ownership: Advent International Corporation (>80 %)
Headquarters: Ismaning, near Munich
Sales: 548 million Euro (2000)
Employees: approx. 1620
Production sites: Burghausen, Gendorf, Knapsack, Cologne
Production capacities: PVC 650 kt/year
VCM 285 kt/year
VCM ex Vintron 330 kt/year
Subsidiaries: Vintron GmbH (100%)
Vinnolit Technologie GmbH & Co. KG (100%)
(VinTec)
Foreign entities: Vinnolit Italia S.r.L.
Vinnolit Benelux N.V.
Vinnolit CEE Kft.
Vinnolit (UK) Ltd.
Vinnolit France S.A.R.L.
Agencies: worldwide

Business activities: PVC for paste processing
PVC for thermoplastic processing
Intermediate products (chlorine, caustic soda, EDC, VCM, tintetrachloride)
EDC- / VCM- / PVC-technology (VinTec)
 

Contact: Dr. Oliver Mieden,
Environmental Affairs / Corporate Communications
Tel.: 089 - 96103-208,
Fax: 089 - 96103-122,
e-mail:
oliver.mieden@vinnolit.com

Wäschle & Partners GmbH,
Klaus J. Wäschle,
Rofanstr. 44,
D-81825 München,
Tel: 089 - 431 30 10,
Fax: 089 - 431 28 40;
e-mail:
K.Waeschle.pr@t-online.de

1 Vinnolit GmbH & Co. KG - a company as part of the Advent International Corporation - is the leading producer of PVC in Germany and one of the most significant in Europe. The head office is situated in Ismaning, near Munich. Production sites are in Burghausen, Gendorf, Knapsack and Cologne. Annual turnover in 2000 was 548 m. Euro. Vinnolit has 1600 employees including those from wholly owned subsidiaries Vintron GmbH and Vinnolit Technologie GmbH & Co. KG (VinTec). Joint Managing Directors are Dr. Josef Ertl and Hans-Jürgen Zippel.