Seattle, WA, USA--(Jobwerx News)--Solvay to sell Industrial plastic foils and sheets business to Renolit, enabling a new platform for the development of a world-class thermoplastic films company.

SOLVAY SA announced that it has signed a memorandum of understanding with RENOLIT A.G. aiming at the sale of its entire Industrial Foils business, active in the production, marketing and sales of plastic foils and sheets to RENOLIT. Both parties will now enter into exclusive talks and intend to finalize the transaction before year end, pending relevant regulatory approval and social procedures.

The agreed price for the transaction is EUR 330 million. This proposed transaction does not include Solvay’s rigid plastics foil activities, whose sale to Ineos was announced last January.

BASF recently sold its United States and Canada polystyrene facilities to INEOS, a rapidly growing global manufacturer of specialty and intermediate chemicals and polymers, headquartered in Lyndhurst, United Kingdom.

Solvay is an international chemical and pharmaceutical Group with headquarters in Brussels and its three business activity sectors including, Chemicals, Plastics and Pharmaceuticals.

The Industrial Foils of SOLVAY are mainly present in Europe with 9 plants located in 8 countries, but also in the United States with one plant located in Commerce, California, (USA) as well as in China and Brazil through two joint ventures. The plastics products are intended for a variety of applications, including medical supply, swimming pools, furniture, construction, stationary, automotive, as well as different consumer goods niches. Solvay’s Industrial foils generated a total turnover of about EUR 470 million in 2004 with 2 200 employees.

The operation would enable the Industrial Foils to join a Group which considers plastics foils as a core development area, and for which the SOLVAY Industrial Foils activity represents a source for coherent diversification and reinforcement.

“The SOLVAY group’s priority is sustainable, profitable growth in selected areas of pharmaceuticals, chemicals and plastics,” explained Aloïs Michielsen. “Meeting those objectives in the industrial foils business required a major strategic evolution,” said Michielsen. “We are very pleased to see this activity joining RENOLIT, a worldwide player in the plastic film business,” he added.

“SOLVAY’s Industrial Foils are for us an essential platform of development which would contribute to the coherent business diversification, leadership and growth strategy of RENOLIT,” explained Dieter Dengl, chairman of the supervisory board of RENOLIT AG. “The activities we intend to acquire are complementary to ours, in terms of business portfolio, geographical coverage and expertise, to the benefit of our customers” added D. Dengl.

RENOLIT A.G. is an international leader in the manufacture of high-quality thermoplastic films for the purpose of surface finishing and for other technical applications. This independent family-run business, which has been setting benchmarks for quality and innovation for over 50 years, now employs a workforce of 2,300 employees at its16 subsidiaries. The RENOLIT brand enjoys a worldwide reputation for technical expertise, modern product design and customer-orientated service.

SOLVAY employs some 30,000 people in 50 countries. In 2004 its consolidated sales amounted to EUR 7.9 billion. SOLVAY is listed on the Euronext 100 index of top European companies.

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