Vinyls help raise Solvay sales

27 October 2006 – Both the specialty polymers and vinyls businesses helped lift Solvay’s plastics sales by 10% to €2.86bn in the first nine months of this year. Earnings before interest and taxation (EBIT) were 6% higher, at €315m, in the nine months. In the third quarter, Solvay’s vinyls business saw strong growth, contributing to a 26% rise in EBIT in the plastics segment. Including other segments, Solvay’s group EBIT was 31% higher at €883m in January-September, while sales rose 13% to €7.0bn. The company said the vinyls business had seen good volumes in Europe and the Mercosur grouping of South American countries. It also indicated benefits from a gradual increase in prices and increased competitiveness after its Ludwigshafen vinyls unit was closed in January. In specialty polymers, sales have been high in certain markets: electronics, medical, petroleum drilling and packaging. Sales increased sharply in Asia. But Inergy Automotive Systems – the joint venture with Plastic Omnium in automotive fuel systems – experienced a 3% fall in sales due to a “marked slowdown” among customers in North America and western Europe.