EBRD invests EUR 52 million in Russian integrated PVC producer RusVinyl

Solvay announces today that the Board of Directors of the European Bank for Reconstruction and Development (EBRD) has approved an equity investment of EUR 52 million in SolVin Holding Nederland on the 21st of July. This investment will support the construction of RusVinyl, the largest integrated PVC plan in Russia. Construction of the PVC plant in Kstovo near Nizhniy Novgorod is already ongoing. SolVin Holding Nederland has a 50% stake in RusVinyl.

EBRD’s Board of Directors has also approved an eleven year EUR 150 million loan with a three year grace period to RusVinyl. The terms of this loan will be detailed in an agreement between EBRD and RusVinyl, which is scheduled to be signed in the autumn of 2010.

The Russian authorities are giving great importance to RusVinyl, which is included in the Development Strategy for the chemical and petrochemical industry of Russia of the Ministry of Industry and Trade of the Russian Federation for the period up to 2015. The investment also received the priority status of the Investment Council of the Nizhniy Novgorod region in Russia.

"SolVin is pleased to welcome the EBRD as shareholder in this exciting project, which will bring benefits to all stakeholders involved. Vinyls are versatile and durable materials with a very good life cycle assessment and can be used for a wide array of applications. We look forward to RusVinyl satisfying the growing needs in Russia", says Jacques van Rijckevorsel, Chairman of the Board of Directors of SolVin and member of Executive Committee of Solvay.


The EBRD is the largest financial investor in its region of operations which stretches from Central Europe and the Western Balkans to Central Asia. With the ability and willingness to bear risk on behalf of its clients, the Bank helps their countries in the region to become open, market economies. The EBRD is owned by 61 countries, the European Union and the European Investment Bank.

RusVinyl
is a 50/50 joint venture established by Solvin and SIBUR Holding for the construction of an integrated PVC plant with a capacity of 330,000 tons per year in Kstovo, Nizhniy Novgorod region, Russian Federation.

SolVin
is a leader on the Vinyls (PVC) market in Europe and on the PVDC market worldwide. The 50% stake in RusVinyl is held by SolVin Holding Nederland, which is jointly held by Solvay (75%) and BASF (25%). Further information is available on www.solvinpvc.com.

SOLVAY is an international Chemicals group. It offers a broad range of products and solutions that contribute to improving quality of life. The Group is headquartered in Brussels and employs more than 19,000 people in 50 countries. In 2009, its consolidated sales amounted to EUR 8.5 billion. Solvay is listed on the NYSE Euronext stock exchange in Brussels (NYSE Euronext: SOLB.BE - Bloomberg: SOLB.BB - Reuters: SOLBt.BR). Details are available at www.solvay.com.

 

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