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03-11-2008

Solvay: Sale of PP Compounding Activity

Solvay announced that it has finalized the sale of 100% of its subsidiary Solvay Engineered Polymers (SEP), a major supplier of polypropylene compounds, to LyondellBasell Industries. The transaction - originally announced in November 2007 - was completed following the relevant regulatory approval.

SEP, which is essentially active in the North American Free Trade Agreement (NAFTA) region, has operations in Mansfield and Grand Prairie, Texas, as well as in Auburn Hills, Michigan. The company is also represented in Europe and in China through sales offices. The annual sales of SEP account for less than 2% of the turnover of the Solvay group.

Solvay is committed to the development and manufacturing of specialty polymers, in a drive to offer the world’s broadest range of high performance and ultra-high performance materials. However, the strategic fit of SEP’s polypropylene compounding activities had become limited within Solvay’s Plastics Sector because, among other reasons, the Group completed the divestiture of its polypropylene resin production in 2001.

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