Solvay and INEOS have announced the start up of their Joint Venture company, INOVYN, following approval from the European Commission.
INOVYN combines the expertise of both Solvay and INEOS to create what the companies say will be a “world-class competitive player” in chlorovinyls.
"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 finalised terms of the Joint Venture agreement remain materially unchanged from those announced in June 2014. Solvay received an upfront cash payment of €150 million upon closing, in addition to contributing its entire European chlorovinyl business, transferring 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.
As of July 1st, Solvay is buying BASF's 25 percent stake in its PVC Joint Venture SolVin*. Financial details of this deal have not been 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