Ineos ChlorVinyls is to sell its Emulsion PVC (E-PVC) business to the German outfit Vinnolit for an undisclosed sum..
The sale consists of the company’s E-PVC production facilities at Hillhouse in the UK and Schkopau in Germany. Vinnolit has also entered into an Offtake Agreement for the entire E-PVC output at Porto Torres in Italy. An Offtake Agreement is an agreement where a customer for a product, in this case E-PVC, agrees to buy a part or the total output of the product from a manufacturing facility at pre-determined prices and conditions over a number of years.
Ineos ChlorVinyls will retain its European VCM and Suspension PVC (S-PVC) businesses at Runcorn and Barry in the UK, Wilhelmshaven and Schkopau in Germany and Porto Marghera, Porto Torres and Ravenna in Italy.
VCM/S-PVC is the largest business of Ineos ChlorVinyls, with the group’s production capacity standing at around 1.1 million tonnes of VCM and 1.4 million tonnes of S-PVC.
S-PVC is mainly used in the construction and packaging sectors, whilst VCM is used primarily within the Ineos supply chain.
The Ineos E-PVC business has an annual turnover of approximately 150 million Euros.