In a regional restructuring move, Solvay (rue due Prince Albert 33, B-1050 Brussels) and Elf Atochem (HQ: 4, Cours Michelet, La Defense 10, Cedex 42, F-92091 Paris) have decided to pool their Spanish capacities for general purpose PVC as of 2001. Under the envisaged agreement, the two companies would jointly use Solvay´s existing plant at Martorell, which is being expanded from 140,000 t/y to 230,000 t/y of general purpose. Solvay´s 12,000-15,000 t/y emulsion PVC production at the site is to be transferred to sites at Rheinberg, Germany, and Tavaux, France. Elf Atochem´s 7,000 t/y plant at Miranda and a 15,000 t/y unit at Hernani are to be shut down. Each partner is to retain its own separate sales network.

Solvay and Elf Atochem already cooperate in the Spanish vinyl chloride market. Their Vinclor partnership, which produces 250,000 t/y of VCM at Martorell, will supply feedstock for the pooled PVC production. Solvay last year signed a PVC manufacturing and marketing agreement with BASF (D-67056 Ludwigshafen) covering Belgium, France and Germany. It closed a 95,000 t/y plant at Ferrara, Italy, on 1 January 1999. Elf Atochem tightened up its French operations in 1998, concentrating general purpose PVC at Balan and Saint-Fons.

Meanwhile Solvay has signed a letter of intent with Shanghai Chlor Alkali Chemical (SCAC) to “study the establishment of a joint venture” to produce and market PC compounds in China, starting in the year 2000. The jv would own and operate SCAC´s existing 30,000 t/y compounding facilities in the Shanghai area and would be supplied by SCAC with resin. It would use Solvay´s technology to develop “technically demanding” PVC grades to meet growing Chinese demand for window profiles and medical equipment, as well as toll manufacturing PVDC blends for the Belgian group´s Chinese customers.