As widely anticipated, US investment group Strategic Value Partners (SVP, Greenwich, Connecticut; www.svpglobal.com) is divesting German PVC producer Vestolit (Marl; www.vestolit.de). New owner Mexichem (Tlalnepantla / Mexico; www.mexichem.com.mx) is paying EUR 219m for the company. The deal marks the second time in the past month that a leading German PVC producer has been sold to a new North American owner. On 31 July Westlake (Houston, Texas / USA; www.westlake.com) had announced the completion of its acquisition of Vinnolit – see Plasteurope.com of 01.08.2014.

SVP said that during its ownership, Vestolit raised its profitability and also made several technological improvements, including the introduction of the more environmentally friendly membrane electrolysis technology. Vestolit has a nameplate capacity of 400,000 t/y of PVC paste, and posted sales of EUR 477m in 2013.

Commenting on the sale, SVP Global founder and chief investment officer Victor Khosla said Vestolit has always excelled in technology, which has constituted the basis for stable development in difficult economic times. He added that Mexichem will now accompany Vestolit in its future growth phase in a changing European market environment. Indeed, the regional PVC landscape has been marked by upheaval in the past few months.

Aside from the change in ownership of both Vestolit and Vinnolit, the European Commission recently gave the green light for the planned PVC compounds joint venture between Ineos and Doeflex – see Plasteurope.com of 06.08.2014. Earlier this year, the authorities okayed the merge of Ineos and Solvay’s PVC activities in the new Inovyn joint venture.

For further details on the changes in the European PVC market, see Plasteurope.com of 29.07.2014.