SOLVAY ENTERS RUSSIAN PVC COMPOUNDS MARKET
Solvay has just signed an agreement with private Russian company Vladimir Chemical Plant (VCP) to create a PVC compounds joint venture in Russia, to be called Solmir. The creation of this company, which is scheduled to be operational at the beginning of 2002, will make Solvay the first Western PVC producer to set up in the Russian PVC market.
The agreement pertains to the creation, on VCP's site, of a unit that will produce rigid compounds - aimed at the production of window frames and wall coverings. The joint venture will employ around 50 people; its production capacity will be 15,000 tons per year. Solvay will hold 51% of the capital of the new company.
The creation of this joint venture fits perfectly into the recent evolution and the development perspectives of the Russian market. The devaluation of the ruble in 1998 made import products unaffordable for Russian consumers and prompted the quick emergence of many local processors. Together, Solvay and VCP can supply them with a prime-rate feedstock at competitive prices, which will enable them to manufacture and to sell superior quality products to the building industry. In a next step, Solvay and VCP are considering producing soft PVC compounds for the Russian automobile industry.
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