Solutia completes buy-out of Mexican JV partner

Solutia Inc., the world leader in the production and sale of polyvinyl butyral (PVB) interlayers, has become the sole owner of Quimica M, S.A. de C.V., formerly a joint venture with Vitro Plan, S.A. d…

Solutia Inc., the world leader in the production and sale of polyvinyl butyral (PVB) interlayers, has become the sole owner of Quimica M, S.A. de C.V., formerly a joint venture with Vitro Plan, S.A. de C.V., through the purchase of Vitro Plan“s 51% stake in the business, it was announced on 2 March 2006. In addition, Solutia and certain affiliates of Vitro Plan have entered into agreements under which Solutia will supply the affiliates with their requirements for Saflex(R) and Vanceva(R) PVB interlayer products. Both the purchase and supply agreements became effective 1 March 2006. With its buyout, Solutia becomes the sole owner and operator of the Quimica M PVB interlayer plant in Puebla, Mexico. “This acquisition reflects our commitment to meet the growing global demand for our Saflex and Vanceva PVB interlayers. The Puebla plant will now make PVB interlayers not only for Vitro Plan and other valued Mexican customers, but also for our customers around the world,” said Luc De Temmerman, president of Solutia“s Performance Products Division. “The Puebla plant produces world-class products from a very competitive cost position. Therefore, we have plans to invest in new capacity as well as additional capabilities, which will enable us to begin manufacturing new products that are on the leading edge of technological development”. Jeffry N. Quinn, chairman, president and CEO, added, “We are relying on our Laminated Glazing Interlayers (LGI) business to generate significant profitable revenue growth for Solutia, both now and well into the future. This acquisition, in combination with the new PVB interlayer plant we are building in Suzhou, China, demonstrates our ongoing commitment to realizing this potential”. The Puebla plant operates state-of-the-art PVB interlayer manufacturing lines using the same Solutia technology in use at other company sites. In addition to the Puebla plant, Solutia“s LGI business manufactures PVB interlayers at Ghent, Belgium; Sao Jose Dos Campos, Brazil; Springfield, Massachusetts, USA; and Trenton, Michigan, USA. It also has a PVB finishing center, distribution center and regional customer service center in Singapore. The company“s newest PVB interlayer plant, being constructed in Suzhou, China, is scheduled to begin production in mid 2007.