Solvay Discussing RusVinyl Sale
Solvay has announced it is in “advanced” talks to sell its 50% share of Russian PVC joint venture RusVinyl to partner Sibur. Russian government authorities have given their preliminary clearance for the transaction, which remains subject to several other regulatory approvals.
The Belgian chemical company declared in March 2022 that it was suspending RusVinyl’s dividend payments along with halting operations and new investments in Russia because of the war in Ukraine.
RusVinyl is one of Russia’s leading PVC producers, with capacity of 330,000 t/y at its site in Kstovo, Nizhny Novgorod; most of the output feeds the domestic market. Created in 2008, RusVinyl was a joint venture between SolVin — a subsidiary of Solvay and BASF — and Sibur. BASF sold its 25% stake in SolVin to Solvay in July 2015, increasing Solvay’s share in the Russian PVC partnership to 50%.
Compensation for Italian sites
In separate news, Edison, the former owner of Solvay’s sites in Spinetta Marengo and Bussi sul Tirino in Italy, has agreed to compensate the Brussels-based group for breaching environmental representations and warranties relating to the sale of its Ausimont subsidiary in May 2002.
"Solvay acquired the Spinetta site based on representations which failed to disclose material environmental lapses. Upon discovering important deficiencies, Solvay initiated proceedings against Edison and mobilized significant technical and financial resources to undertake important remedial actions,” said Marco Martinelli, country manager Italy and group industrial director. “Our actions resulted in a significant improvement in air and water quality, inside and outside the industrial site.”
Solvay is to receive about €91.6 million after the International Chamber of Commerce's arbitration tribunal, the Swiss Supreme Court and the Milan Court of Appeal all ruled in favor of the company in a case that has lasted for more than 10 years.
The compensation relates to costs, losses and damages suffered by Solvay up to the end of 2016. Additional arbitration procedures are currently ongoing regarding costs, losses and damages suffered from January 2017 onward. Solvay said it is confident in the merits of its claim for additional significant compensation in this second phase and expects proceedings to conclude in 2024.
Author: Dede Williams, Freelance Journalist
