Safi to acquire Ineos' VCM and PVC facilities in Italy

25-Feb-09

Ineos has signed an agreement with Safi at the Ministry for Economic Development for the sale of its VCM (vinyl chloride monomer) and PVC (polyvinyl chloride) production facilities in Italy to Safi. Safi is an Italian company owned by Fiorenzo Sartor and will acquire manufacturing facilities in Porto Marghera, near Venice and in the Sardinian towns of Porto Torres and Assemini. It is still unclear as to who will bear the expenses to upgrade chlorine production to the less-polluting membrane technology. Ineos has reached a simultaneous agreement with Eni to restructure part of its chlorine production facilities (operated by its subsidiary Syndial), upon which VCM production depends. Earlier this week it appeared likely that Ineos Vinyls Italia would file for bankruptcy on Wednesday if it could not conclude a sale to Sartor. Earlier in the month, Ineos Vinyls Italia appointed a lawyer specialising in bankruptcies to look into all options for the company, including any "that would be less traumatic for the Venice region (where Ineos Vinyls Italia has its main production operation) and the workers involved".